Magna Entertainment Corporation (MEC), the Canadian owner and operator of racetracks and a leading supplier via simulcasting of live content, has announced the resignation of its Lead Director, Jerry Campbell.
Campbell was also a member of the Ontario firm’s Audit Committee and his decision means that MEC does not meet the requirements provided for in Nasdaq Marketplace Rule 4350(D). This directive stipulates that MEC's Audit Committee must be comprised of at least three independent directors with MEC presently having only two.
MEC stated that it intends to rely on a supplementary rule and would now have until the earlier of either its next annual shareholders meeting or February 20, 2010, in order to regain compliance with Nasdaq's audit committee requirements.
'On behalf of everyone at MEC, I would like to thank Jerry for his dedication and many years of service,” said Frank Stronach, Chairman and Chief Executive Officer for MEC.
In another blow to the debt-ridden firm, the Toronto Stock Exchange also announced that it is conducting an expedited review of the eligibility for continued listing of Magna’s Class A Subordinate voting shares.
The announcement followed a 25 percent drop in the value of the company’s stock on the Nasdaq Stock Market, which came after it revealed last month that it would not be proceeding with a previously announced reorganisation proposal.