Tracinda Corporation Challenges Chrysler's Corporate Governance

Tracinda Corporation, the largest shareholder of Chrysler Corporation, met with Chrysler's Board of Directors to discuss the company's corporate governance procedures and Board membership. Tracinda, which owns 51.9 million Chrysler shares, delivered a letter to Chrysler and filed it as an amendment to its Schedule 13D with the Securities and Exchange Commission. The letter outlines Tracinda's proposals to Chrysler, which include ensuring procedural fairness, providing a balanced presentation of all proposals, and impartial reporting on the results of the process.

Key Takeaways:

• Tracinda Corporation, the largest shareholder of Chrysler Corporation, has been discussing corporate governance procedures and Board membership with Chrysler's Board of Directors.
• Tracinda owns 51.9 million Chrysler shares, representing 13.6% of the company's outstanding shares.
• The company is proposing to replace Joseph Antonini as a director with a more experienced and independent individual, Bob Lanigan.
• Tracinda believes that its proposals, which include reviewing Chrysler's cash retention policies and adopting a more robust corporate governance framework, will strengthen the company and benefit all shareholders.
• The Tracinda Board has been engaged in the corporate governance review process, which includes ensuring procedural fairness, active participation of outside directors, and impartial reporting on the results.
• Tracinda's proposals aim to address concerns raised by the financial media regarding the corporate governance process and the Board's composition.
• The inclusion of a more independent and experienced director on the Board could benefit all Chrysler shareholders and stakeholders.

Statistics:

• Tracinda Corporation owns 51.9 million Chrysler shares, representing 13.6% of the company's outstanding shares.
• The company's proposals aim to strengthen Chrysler and benefit all shareholders.
• Tracinda has been an owner and supporter of Chrysler for more than five years.
• The Tracinda Board has proposed replacing Mr. Antonini with Bob Lanigan, who would bring significant experience to the Board.

Sources:

• Tracinda Corporation
• Chrysler Corporation
• Schedule 13D filing with the Securities and Exchange Commission
• Letter from Tracinda Corporation to Chrysler Corporation's Board of Directors (dated November 2, 1995)
• Press release from Chrysler Corporation (dated November 2, 1995)