General Electronics (GE) would be asking their investors to select 10 directors for the board of the company since 2 longest served directors are on the verge of retiring. Previous CEO of Woodbridge Company, Geoff Beattie and previous CEO and chairman of Conco Phillips, Jim Mulva would be taking permanent leave from the board of GE on the day of its yearly meeting which is on May 8, 2019. Mulva has been in the board since 228 and Geoff since 2009. 15 capable men have already retired from GE board. 7 out of 10 members who are getting selected during May have newly been part of GE in past two years. Larry Culp, CEO of GE has been thinking of some rebound plan following the company’s idea of releasing billions in cash in the form of mergers or asset sales.
GE would have to think of best replacements for Mulva and Geoff and while that is in progress, the company wants a perfect of 12 members in their board. They do not want the board to fall short of members because that might cause troubles during important decision making situations and to handle crisis. However, there is also a huge concern to find proper replacements for two such men that had been attached to the board and had known the company inside out. Thus, disputes were less and work was done smoothly. GE has made a request to their shareholders to make a change in Certificate of Incorporation. The company wants the least number of people on the board to be reduced from 10 to 7. They want their Certificate of Incorporation to be updated so that it does not leave room for further misunderstanding especially while transition is ongoing.
Both CEO and administrative officials of GE now eagerly hope their investors to understand the situation and help them accordingly.