HCA lets major shareholders nominate directors after activist investor pushes for change

Ayla Ellison (Twitter) - Print  | 

The directors of Nashville, Tenn.-based HCA Healthcare voted last week to allow established investors to participate in the board seat nomination process, according to a filing with the Securities and Exchange Commission.

The company added a provision to its amended bylaws to allow an individual stockholder or a group of up to 20 stockholders who have owned at least 3 percent of HCA's common stock for at least three years to nominate directors. Investors who meet those requirements will nominate up to two board seats, according to the SEC filing.

The move comes after activist investor John Chevedden made a proposal earlier this year to allow investors owning at least 10 percent of HCA's stock to call a special shareholder meeting. His proposal, which gained backing from investors holding only 27 percent of HCA's stock, was voted down in May, according to the Nashville Post.

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