NEWTON, Mass. (AP) - Hospitality Properties Trust has reappointed William Lamkin to its board after he didn't receive a majority of the shares needed to be re-elected.
The Newton, Mass.-based real estate investment trust said Thursday that when Lamkin didn't receive the necessary amount of shares, he resigned.
Hospitality Properties said that it determined that Lamkin likely didn't receive the necessary number of votes because of the board's opposition to a proposal by the California Public Employees' Retirement System.
The board said it felt that Lamkin's continued presence on the board would be in the real estate investment trust's best interests, and it asked him to fill the vacancy he created by resigning. It said Lamkin accepted the appointment.
The announcement by Hospitality Properties comes one day after CommonWealth REIT reappointed Joseph Morea as a board member after he didn't receive a majority of the shares needed to be re-elected.
Lawrence Hamermesh, a professor of corporate and business law at Widener, said in an interview that there typically is nothing in bylaws that says a company has to name someone new if a board member is not re-elected.
Charles Elson, a director of the Weinberg Center for Corporate Governance at the University of Delaware, said that many companies have taken advantage of the exception that allows board reappointments. He said if it happens more often, the exception may one day be eliminated.
Elson said board reappointments create some ill will between companies and their shareholders that is not necessary, adding that companies don't rise or fall based on one individual board member.
Hospitality Properties owns 289 hotels and 185 travel centers located in 44 states, Puerto Rico and Canada.
Its stock added 2 cents to $30.71 in afternoon trading Thursday after trading as high as $30.94 earlier in the session, its highest level since June 2008.