MFC Industrial and IAT Reinsurance Settle

In the Friday evening news dump, there were some interesting tidbits, including, and with no particular relation to one another, a mine safety disclosure from Berkshire Hathaway, and a settlement agreement between MFC Industrial and IAT Reinsurance.

Peter Kellogg of IAT (who controls 33% of MFC’s shares) was ultimately elected to MFC’s Board after an interesting proxy fight this past December.  Friday’s settlement indicates that the MFC Board size will now increase from five to seven:

“On or prior to the date hereof, the Board has passed a resolution fixing the number of directors of the Company at seven (7), subject to the filing of the Notices of Dismissal of All Claims With Prejudice pursuant to Sections 8(a) and 8(b) hereof. The Company covenants that during the Term, the number of directors of the Company shall not be increased from seven directors unless such increase is approved by at least 6 of the 7 directors of the Company. The vacancy on the Board resulting from the increase in the number of directors of the Company to seven shall be filled within one hundred and twenty (120) days from the date hereof by a person who is qualified to act as a director of the Company and who is selected and approved by mutual written agreement of the Company and IAT.”

Mutual agreement on two names?  Mark me intrigued.

Disclosure: I own shares of Berkshire Hathaway and MFC Industrial.

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