New Jersey-based food group B&G Foods, Inc. has received notification from the American Stock Exchange (AMEX) that as it no longer complies with the exchange’s independent director and audit committee regulations, it will from tomorrow (31 January) have to trade its Enhanced Income Securities (EISs) under the symbol ‘BGF.BC’.
The non-compliance notice follows the resignation of Nicholas B. Dunphy, an independent director on the company’s audit committee and its nominating and governance committee. The company has stressed that Dunphy’s resignation was not the result of any disagreement.
However, as a result of his leaving the company, only three of the remaining six directors on the board have previously been designated as “independent”, while the nominating and governance committee and B&G’s audit committee each now have only two members.
B&G had informed the AMEX of the situation in early-January when it said it planned to be back in compliance on or before 8 March. The exchange has agreed to allow the company to continue to trade provided it resolves the situation by 8 March but warned that if it was not back in compliance by that date it may initiate delisting procedures.
B&G said when announcing the ‘BC’ notice that it was “working diligently to complete its search for Mr Dunphy’s replacement and anticipates that a replacement independent director will be appointed to the board, the audit committee and the nominating and governance committee within the grace period provided by the Amex”.