Company: ACEL
Filing Date: 2025-04-11
Form Type: PRE 14A
Source: 0001628280-25-017502
Chunk: 28

Company: Accel Entertainment, Inc.
Filing Date: 2025-04-11
Form: PRE 14A
Chunk 28
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 have been elected for three-year terms or portions thereof will be entitled to complete those terms, and thereafter they or their successors would be elected for one-year terms at each annual meeting of stockholders. Beginning with the 2027 annual meeting of stockholders, our Board would cease to be classified and the entire Board would stand for election annually for one-year terms.

In addition, Delaware law provides that directors serving on boards of directors that are not classified may be removed for or without cause, whereas currently our directors can be removed only for cause since our Board is classified. The proposed Declassification Amendment would permit stockholders to remove directors elected for one-year terms with or without cause. Directors in a class that is serving out the remainder of a three-year term would continue to be removable only for cause.

The description of the proposed Declassification Amendment set forth above is qualified in its entirety by reference to the text of the proposed Declassification Amendment, which is attached as Appendix A to this proxy statement. Additions to the COI are indicated by highlighting , and deletions to the COI are indicated by strike-outs.

In deciding to approve the Declassification Amendment and to recommend that the stockholders vote to adopt the Declassification Amendment, our Board considered the advantages and disadvantages of maintaining a classified board structure. A classified board of directors can benefit stockholders by: promoting continuity and stability of our Board; encouraging directors to take a long-term perspective; reducing our vulnerability to coercive takeover tactics and special interest groups that may not be acting in the best interests of all stockholders; and enhancing the independence of non-management directors by providing them with a longer term of office and insulating them against pressure from management or special interest groups. While our Board continues to believe that these are important benefits, our Board has also considered that a classified board structure may have the effect of reducing the accountability of directors to stockholders, and recognizes the benefit of providing stockholders an annual opportunity to express their satisfaction or dissatisfaction with the actions of our Board. In addition, our Board believes it is important for our Board to maintain stockholder confidence by demonstrating that it is responsive and accountable to stockholders and committed to strong corporate governance. Therefore, following consideration of the matter, and due to its belief that a declassified board structure provides more accountability to stockholders and promotes stronger corporate governance, our Board, on its own initiative, has adopted resolutions to approve the Declassification Amendment, to declare the Declassification Amendment advisable and in the best interests of Accel and its stock