NEW YORK, Jan. 30 /CNW/ - The Stilwell Group ("the Group") requisitioned
a special election to put an end to certain payments to board members and to
remove two legacy board members.
Joseph Stilwell stated, "Since our nominees joined the board three weeks
ago, we have been shocked at the deep passivity of many directors. These board
members do not act like representatives of the owners. I trust that the
removal of a couple of the legacy board members will help cut through the
inertia that currently pervades the board."
"Further, with the ratings downgrade last week, the company must move
promptly to sell non-core lines of business. The current practice of
holding-company board members sitting on subsidiary boards and being paid for
doing so creates a perverse incentive which is antithetical to what the
company must now do. It is inappropriate and sets a terrible example since KFS
must now make meaningful expense reductions."
The special election will be held to reduce the Kingsway Financial
Services Inc. ("Kingsway") board of directors by two and the Stilwell Group
will not nominate replacements. The Group's current agreement prohibits them
from seeking to control the board.
The Stilwell Group is a New York-based money management firm which
currently owns 4,975,000 or 9% of Kingsway's outstanding shares of common
stock. The Stilwell Group is keenly interested in seeing Kingsway quickly
reduce costs, focus on its core businesses, and increase long-term shareholder
For further information:
For further information: Questions may be directed to: Wes Hall,
President and CEO, Kingsdale Shareholder Services Inc., (416) 867-2342;
Suzanne Griffin, Director of Communications, The Stilwell Group, 26 Broadway,
23rd floor, New York, NY, 10004, (212) 269-1551