Debate over The Economical’s board membership begins in earnest

Debate over a proposed vote to replace the current board of directors of the Economical Mutual Insurance Company began in earnest the week of Apr. 11-15.The dispute about board membership is linked to a proposal to demutualize the company. Mutual policyholders are expected to discuss a proposal to demutualize the company at The Economical’s annual general meeting on May 26, 2011.A group of dissident mutual policyholders, represented by VC & Company, requested a vote at the company’s annual general meeting on a proposal to replace The Economical’s board with a new board. The Ontario Superior Court ruled on Apr. 6 that the dissident’s proposal could be considered at the company’s AGM.After the court’s decision, the Economical and VC & Company each issued circulars that essentially outline the pros and cons of keeping or replacing the company’s current board members.A press release about The Economical’s management proxy circular can be viewed at:http://www.economicalinsurance.com/en/media/resources/2011_TEIG%20Circular%20release%20%20April%2011%20.pdfVC & Company’s circular can be viewed at:http://concernedeconomical.com