Dallas-based Tenet Healthcare's board of directors approved amendments to the company's bylaws that allow majority shareholders to request special meetings, according to a filing with the Securities and Exchange Commission.
Prior to the changes, which took effect Jan. 21, only the CEO, chairman of the board or the board itself could call special meetings of the shareholders.
In addition to the requirements to request a special meeting, the recent amendments to the bylaws set forth the circumstances under which Tenet can decline a special meeting request. For example, the board can choose to call an annual shareholder meeting instead of holding a special meeting requested by shareholders.
Although it is unclear why Tenet decided to change its bylaws, Frank Morgan, an analyst with RBC Capital Markets, wrote in a "first impression" analysis that the amendments "could potentially make it much easier for a majority shareholder to cause a sale of the company."
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