Opinion ID: 2275517
Heading Depth: 1
Heading Rank: 7

Heading: Board Adds Two Directors

Text: By the middle of August 2002, it was apparent that MM's nominees, Holtzman and Mitarotonda, would be elected at the annual meeting, to serve in place of the two incumbent nominees, as members of the Liquid Audio board. On August 23, 2002, Liquid Audio announced that the Board had amended the bylaws to increase the size of the Board to seven members from five members. The Board also announced that defendants James D. Somes and Judith N. Frank had been appointed to fill the newly created directorships. Defendant Somes was appointed to serve as a Class II member of the Board and defendant Frank was appointed to serve as a Class I member of the Board. After the Board expanded from five directors to seven, MM revised its proxy statement to note that its proposal to add four directors, if successful, would have resulted in a board with eleven directors, instead of nine.