Forest City's Bruce And Charles Ratner Will Step Down From Board, Ax Dual Share Structure
Forest City Realty Trust will ax the dual-share structure that gives the Ratner family voting power over the REIT, The Real Deal reports.
In addition, board chairmen Bruce and Charles Ratner plan to resign from the REIT's board at the end of the year, though Bruce will continue to serve as executive chairman of the NY division, Forest City Ratner. Activist investor Scopia Capital Management called for the removal of the dual structure process in August, claiming it harmed the company. The Ratner family owned about 3.8% of the firm's Class-A shares, while holding a whopping 92% of the REIT’s Class-B shares—thus giving it control of the board.
“We’ve determined that now is a good time to collapse the dual-class structure,” Charles said in a statement. “Today’s announcement will strengthen the company’s corporate governance profile by aligning voting rights with the economic interests of our shareholders.” [TRD]