SilverSun Technologies has eliminated a Class B Preferred stock plan that gave its CEO, Michael Meller, voting control of the company. The company announced the deal in a filing in the SEC in settling a suit brought by an activist shareholder. SilverSun is the parent of reseller SWK Technologies.

The company agreed to eliminate the single share of class B stock that was awarded to Meller which was valued via a formula that guaranteed him voting control. However, it continues to deny the allegations in the suit. SilverSun also agreed to pay $115,000 in fees and expenses to the attorney of John Solak of Binghampton, N.Y. Solak is frequent plaintiff in suits about corporate governance. For example,in 2015  he sued Sears Holdings over the sale of K-Mart and Sears stores to a trust controlled by Sears CEO Edward Lampert. In the SilverSun case, the company agreed if it wants to reward Meller similarly with special voting rights in the future a unanimous vote of independent directors will be required to determine if the move is justified. SilverSun also agreed to review all of its financial statements to ascertain the impact of the Tax Cuts and Jobs Act; to enhance its conflict of interest policies and practices and to extend the latter to include its directors. 

Last modified on Wednesday, 07 August 2019
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