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The North State Communications complex is seen in downtown High
Point.
Don
Davis Jr. | HPE
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ONLINE DEBATE: Shareholder group seeks to
influence North State’s direction
by Paul Johnson
June 13, 2011
HIGH POINT – As with so
many issues in the Internet era, a debate about the future of High
Point-based North State Communications is playing out online.
In the fall of last year, a forum website was set up so shareholders of
North State could receive and exchange information about the company,
direct questions to North State management and offer direction on the
116-year-old communications company. Managed by The Shareholder Forum
Inc., the online forum has provided reports and input to North State
management.
However, a company executive downplays the input and role of the North
State Shareholder Forum.
Company officials recognize that the Shareholder Forum is one method for
shareholders to communicate with management, but it’s not North State’s
preferred way, said Royster Tucker, president and chief operating
officer.
“We don’t perceive it to be the appropriate way. We’ve told shareholders
to come to us; we’re very open to talk with you guys,” Tucker said.
The Shareholder Forum doesn’t represent “a reputable way” to communicate
with management, Tucker said. The vast majority of North State
shareholders, which number in the several hundreds, are pleased with the
management and the company’s direction, Tucker said.
The chairman of the Shareholder Forum, who’s based out of New York City,
said that the forum is providing a worthwhile service for the company’s
shareholders.
“This more open definition of shareholder interests should benefit
everyone,” said Shareholder Forum Chairman Gary Lutin. “For example, the
company’s executives learned from the forum that shareholders thought it
was important for the company to provide more timely annual reports, and
the executives won a lot of respect by responding immediately with a
2010 performance report in March instead of waiting until December.”
The creation of the Shareholder Forum for North State takes place
against the backdrop of an unsuccessful effort by a shareholder last
year to pressure North State into a sale of the company. North State’s
management isn’t interested in a change of ownership or buyout,
believing that the company is positioned for growth, Tucker said.
“We have adopted a real aggressive path to keep the shareholder value
up,” Tucker said.
pjohnson@hpe.com | 888-3528
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North State Communications official website:
www.northstate.net
Shareholder Forum website focusing on North State:
www.shareholderforum.com/nors
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The High Point
Enterprise, 210 Church Avenue,
High Point, NC 27262 • 336-888-3500 |
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