The Economical receives proposal from VC & Company asking policyholders to vote on a new board of directors in May 2011

Mutual policyholders of The Economical Mutual Insurance Company will not only be considering a path of demutualization in May 2011, but they may also be asked to consider a re-composition of its board of directors.
Toronto firm VC & Co. Advisory Limited confirmed in a press release on Jan. 4 that policyholder proposals were submitted to The Economical on Dec. 30, 2010 calling for the replacement of The Economical’s current board of directors.
“The policyholder proposals give Economical’s mutual policyholders the opportunity to elect a new board that will properly safeguard the interests of Economical and its employees, brokers and other stakeholders and ensure that mutual policyholders receive fair value for their mutual policies on a timely basis,” said Michael D. Woollcombe, executive vice president of VC & Co. Advisory Limited, in a press release.
The policyholder proposals, which have been signed by more than 100 mutual policyholders, will be the subject of a vote at the next meeting of The Economical’s mutual policyholders, currently scheduled for May 26, 2011.
“Prior to that meeting, a detailed information circular will be distributed outlining the reasons that change is required and the names and relevant experience of the alternative board candidates,” VC & Company said in a press release.
Originally, calls for a new board were linked with exploring options for demutualizing the property and casualty insurer. But now that the current board is already seeking a path to demutualize the company, representatives of The Economical say the call for a new board is unnecessary.
The company adds the current board demonstrates a wealth of industry experience. Also, it says, the current board can be trusted to execute the demutualization plan should mutual policyholders opt for that plan in May.