Taro Pharmaceutical Industries Ltd. (Nasdaq: TARO) shareholder Franklin Templeton Investments (Franklin Resources Inc. (NYSE: BEN)), which owns 13% of the company, has called for a general shareholders meeting. The demand comes after Taro again missed its deadline for restating its financials from October 20 to October 27.
Franklin Templeton’s Israeli attorneys sent a letter to Taro, which stated, “Although Taro promised to file its revised financial reports to Nasdaq and investors, including our clients, and the results of the investigation carried out at the company, it failed to do so, in clear violation of the Israeli Companies Law. The company’s entire behavior, and breach of obligations towards the authorities and shareholders, suffer from a gross lack of transparency and discrimination of its minority shareholders, such as our client.”
The attorney’s added that Franklin Templeton demanded that Taro’s directors fulfill their obligation to call a general shareholders’ meeting at which the company’s accountants, auditors, and legal counsel will be present.
Templeton threatened that from now on it would base its actions on the response of Taro’s directors and managers to its demand for a shareholders’ meeting, and would enforce its demands however necessary, including the taking of legal action.
Published by Globes [online], Israel business news - www.globes.co.il - on October 22, 2006
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