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Committee seeks input, board members

Maple Leaf Foods Inc. has begun a process to revamp its board of directors as the restructuring meat processor faces calls for reforms following the departure of a former major investor.

TORONTO — Maple Leaf Foods Inc. has begun a process to revamp its board of directors as the restructuring meat processor faces calls for reforms following the departure of a former major investor.

The Toronto-based meat and bakery company (TSX:MFI) said Monday a committee of its board is soliciting shareholder input as it searches for new director candidates.

“We are looking forward to engaging with our shareholders, and making changes that further strengthen our ability to provide oversight to ensure this company maximizes sustainable return to shareholder,” committee chairman James Hankinson said in a statement.

At least one shareholder — activist hedge fund West Face Capital Inc. — has complained that the Maple Leaf board is too big and alleges some of the directors are too closely involved on a personal level with the McCain family, which has control through special voting rights.

West Face acquired a 10 per cent stake from the Ontario Teachers’ Pension Plan Board in August.

The OTPPB, which had been one of Maple Leaf’s major shareholders in partnership with the McCains, later withdrew its two representatives from the Maple Leaf and sold its remaining 25 per cent stake in November for $362.4 million, a 17 per cent discount to the market price.

A spokesman for West Face said the investment firm hasn’t been contacted by the Maple Leaf committee, even though it was formed in November.

“The committee is supposed to be getting in touch with major shareholders. It has not been in touch with West Face,” John Lute said.

A fight with shareholders could complicate the plans for Maple Leaf’s planned revamp of operations.

In the last few years, Maple Leaf Foods has been squeezed by competition, high input costs and a listeriosis outbreak at one of its plants that left 23 people dead and led to a major recall two years ago.