Scott’s Liquid Gold Inc. (OTCMKTS:SLGD) has been under a lot of pressure from its investors lately, who want the company to be sold. Timothy Stabsoz holds 7.2% stake in the company and is pushing for a change in management. He brought forth his case in the annual shareholder meeting conducted this month. The shareholder demands that the company adopt a cumulative voting procedure for directors and the directors to be withheld against executive pay.
Mr. Stabsoz is the largest shareholder in the company and has announced that he might make a bid for buying the company himself. He has largely been dissatisfied by the performance of the current CEO, Mark Goldstein. Some of the fears stated by Mr. Stabsoz may be true, since the company is in a very profitable market of household and skin-care products, but has failed to report a profit in the past 14 out of its 15-years history. Mr. Goldstein is expected to be elected as the CEO once more, but through the support of the directors.
Mr. Stabsoz had also made a filing with the SEC to either let him buy all of Mr. Goldstein’s shares for 50-cents apiece or the company buys all of his shares for the same price. Mr. Goldstein has repatriated that Stabsoz just wants to pressurize the company into buying his shares at an elevated price. At the moment, Mr. Goldstein holds a 24.2% stake in the company. Mr. Stabsoz believes that as long as Goldstein remains CEO, the voices of the shareholders would never be heard and their concerns would be left unanswered. Scott’s Liquid Gold Inc. (OTCMKTS:SLGD)’s board has also repatriated against Mr. Stabsoz labeling his claims a reckless campaign. The board even went on to state that his filing of the 13-D with the SEC is also full of factual inaccuracies.