BrainChip Holdings Ltd (ASX:BRN) formally rejected an activist shareholder campaign to overhaul its Board of Directors. The board issued an open letter to shareholders. This letter opposed convening a meeting under Section 249D of the Corporations Act to consider the proposed board changes.
The company stated two former BrainChip directors spearhead the activist initiative. These directors had previously lost the support of founders and major shareholders. In the letter, the board characterized the activists' public claims as misleading. The board argued the campaign is misguided. It also argued the campaign threatens company value. The board further stated the campaign is not in the best interests of the company or its shareholders.