Key Summary: On November 25, 2022, Star Equity Fund (5.08%) expressed plans to discuss board composition, corporate governance, and maximizing shareholder value with the Board, requesting a "Proposed Nominee questionnaire" to nominate candidates for the 2023 AGM. On December 7, 2022, they nominated two candidates. On May 9, 2023, Star Equity issued a presentation on enhancing stockholder value. On June 9, 2023, the company's adjourned annual meeting lacked a quorum, leaving current Class III directors, Kevin Landis and Kimun Lee, to continue until the next meeting.Market Cap: $6 million | Firsthand Technology Value Fund, Inc. is an externally managed, closed-end, non-diversified management investment company. The Fund’s investment objective is to seek long-term growth of capital.
Star Equity Fund
On November 25, 2022, Star Equity Fund (5.08%) stated that it expects to engage in general discussions with the Board and management regarding changes to the composition of the Board, corporate governance and evaluating all options to maximize shareholder value. Star Equity Fund requested the company provide them with a copy of the "Proposed Nominee questionnaire" to enable it to nominate candidates for election to the Board at the 2023 AGM. Source
On December 7, 2022, Star Equity Fund nominated two candidates for election to the Board at the company 2023 AGM.
On May 9, 2023, Star Equity issued an investor presentation titled “Our Plan for Enhancing Stockholder Value at Firsthand Technology Value Fund, Inc.,”
On June 9, 2023, the company held its adjourned annual meeting, but there were not enough shareholders present to constitute a quorum. As a result, no business was conducted, and the nominees for the two Class III director positions were not elected. The current Class III directors, Kevin Landis and Kimun Lee, will continue to serve until the next annual meeting or until their successors are chosen. Source
On June 15, 2023, Star Equity Fund criticized the company's voting standards for contested elections and highlighted the failure to establish a quorum at the annual meeting. It called for transparency in voting results and prompt reconvening of the meeting. Star Equity Fund believes a change in Board composition is crucial for better corporate governance and shareholder value. Source
Donald R Chambers
On April 15, 2020, Donald R Chambers announced his support for a non-binding stockholder proposal at SVVC's annual meeting. The proposal urged the Board of Directors to explore options for enhancing shareholder value, including terminating the fund, liquidating assets, conducting tender offers, merging with another entity, or taking other measures to allow shareholders to exit at or near net asset value (NAV). The proposal was motivated by the significant drop in SVVC's stock price and its high expense ratio. At the July 2, 2020 annual meeting, shareholders approved the non-binding proposal.
On April 27, 2022, Donald R Chambers filed proxy materials and submitted a proposal that all investment advisory and management agreements between Firsthand Technology Value Fund, Inc. and Firsthand Capital Management, Inc. shall be terminated.
At the AGM held on May 25, 2022, stockholders did not approve the binding stockholder proposal to terminate the investment advisory and management agreements between Firsthand and Firsthand Capital Management, Inc.
Scott Klarquist
On January 20, 2022, Scott Klarquist, CIO of Seven Corners Capital Management, issued a presentation to the shareholders titled "Time for change at SVVC" expressing his concerns on the stock price performance over the past ten years. He urged the shareholders (i) to vote AGAINST all of SVVC's incumbent director nominees and AGAINST SVVC's executive compensation and (ii) to vote in favour of any shareholders proposal to terminate FCM's management agreement.
On March 11, 2022, Scott Klarquist issued an open letter to the shareholders reiterating his proposals.
On March 28, 2022, Scott Klarquist filed proxy materials nominating himself as a director candidate for election to the Board at the Company's upcoming 2022 AGM. Source
On April 26, 2022, the company announced that the election of Scott Klarquist found in the separate proxy statement from Mr. Klarquist will not be considered at the Annual Meeting.
On May 17, 2023, ISS has recommended that shareholders vote on Star Equity Fund’s WHITE proxy card to elect both its nominees – Robert Pearse and Hannah Bible – to the board at its upcoming 2023 AGM. ISS recommended that stockholders “DO NOT VOTE” on the company’s blue proxy card. Source
Bulldog Investors
Bulldog Investors filed a proxy statement in January 2014, proposing various changes to Firsthand Technology Value Fund. However, a settlement was reached in May 2014, resulting in Bulldog withdrawing its nominees and proposals. As part of the settlement, the Board approved a plan for share repurchases, including up to $10 million in open market purchases in 2014 and a self-tender offer of at least $20 million at 95% of net asset value by January 31, 2015.
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