Tenet Healthcare's board of directors reached an agreement with the company's largest shareholder, Glenview Capital Management, and will make several bylaw revisions as part of the deal.
Here are five things to know.
1. Glenview withdrew its proposal to make an amendment allowing shareholders to take action by written consent without a meeting. It initially submitted the proposal in February.
The proposal letter stated action by written consent "is necessary and appropriate when a company exhibits long-term underperformance operationally, as well as financially."
2. Under the new agreement, Tenet is revising the special meeting bylaw so it can only be amended by a vote from shareholders representing a majority of the outstanding common stock.
3. Tenet will also hold its annual shareholder meeting at least every 13 months, under a bylaw that only a vote from majority shareholders can modify.
4. The agreement includes the addition of a shareholder rights plan bylaw, which will require approval from 75 percent of members on the board of directors for adoption of any future shareholder rights plans. The rights plan will be in place for up to one year, with an additional 90-day period to seek shareholder approval for a longer duration.
5. In exchange for those provisions, Glenview agreed to vote its shares in favor of all Tenet board nominees and support all board-recommended proposals at the 2018 shareholder meeting.