Debate over The Economical’s board membership begins in earnest

Debate over a proposed vote to replace the current board of directors of the Economical Mutual Insurance Company began in earnest the week of Apr. 11-15.
The dispute about board membership is linked to a proposal to demutualize the company. Mutual policyholders are expected to discuss a proposal to demutualize the company at The Economical’s annual general meeting on May 26, 2011.
A group of dissident mutual policyholders, represented by VC & Company, requested a vote at the company’s annual general meeting on a proposal to replace The Economical’s board with a new board. The Ontario Superior Court ruled on Apr. 6 that the dissident’s proposal could be considered at the company’s AGM.
After the court’s decision, the Economical and VC & Company each issued circulars that essentially outline the pros and cons of keeping or replacing the company’s current board members.
A press release about The Economical’s management proxy circular can be viewed at:
http://www.economicalinsurance.com/en/media/resources/
2011_TEIG%20Circular%20release%20%20April%2011%20.pdf
VC & Company’s circular can be viewed at:
http://concernedeconomical.com