Things are heating up (even more than usual) at Mace Security International Inc. (NASDAQ:MACE) in Mount Laurel. Andrew Shapiro's Lawndale Capital Management, one of Mace's biggest shareholders, based in Mill Valley, Calif., told the SEC last week that it has formally notified Mace - led by Louis D. Paolino Jr. - that it will put up four candidates for an expanded board at the next annual meeting. It previously had named three. The fourth, first mentioned in a late August filing, is Philip B. Livingston, the vice chairman of an auditing software company Approva Corp. in Reston, Va. (who also has an affinity webite www.phillivingston.com). The others are listed here and in the filing. Lawndale's letter states that the firm has raised its complaints with Paolino and his team several times:
... such discussions to date have been fruitless and, in Lawndale's opinion, only highlight the existing Board's lack of independence. As a result, Lawndale currently believes that the only way Lawndale can achieve the improvements in the Company's governance structure necessary to create value for all shareholders is to conduct a proxy contest to change the Board and approve the other items set forth in the Lawndale Notice. As described in the Prior Letters and the Lawndale Notice, Lawndale believes that replacing all of the Board members (other than Mr. Paolino) with truly qualified and independent directors who will act solely in the best interests of the Company's shareholders is the best way to improve the Company's governance structure. ...
No date for the annual meeting, yet.
