Glass Lewis supports Sun in Taro battle

Proxy services firm Glass Lewis, a legal firm that advises institutional investors on corporate governance has called on shareholders of Israeli company Taro to vote against all resolutions at an annual general meeting on 31December.

Taro is involved in a bitter battle for control against Indian drug maker Sun Pharma.

Glass Lewis said in a report dated 21 December that the Taro had failed to discharge its responsibility towards shareholder having failed to file its annual reports for the fiscal years 2006, 2007 and 2008 and had re-stated financial statements for fiscal years 2004 and 2005.

The firm has therefore asked shareholders of Taro to hold the company's directors responsible for their serious disservice by voting against them at the AGM, a press release issued by Sun Pharma says. The resolutions to be put to vote include nomination of two external directors and re-election of eight directors.

Sun, India's leading drug firm holds as 36-per cent stake in Taro, and has been involved in a legal battle after the Isareli firm backed out of a $454-million merger deal last year, a year after signing an agreement.

The case is now in Israel's Supreme Court.