The former head of Presidential Life Corp. is asking shareholders to elect a new board of directors to replace the one that has removed him from office as chairman of the company.
In the letter, Herbert Kurz, former chairman and chief executive officer of Presidential Life, Nyack, N.Y., accused the company’s board of using a “diversionary tactic” when it focused on irregularities in tax returns filed by the Kurz Family Foundation Ltd., New City, N.Y., a charitable foundation that owns about 21% of Presidential Life.
Kurz also criticizes the board’s expenditures on 4 law firms and other advisors.
If his slate of candidates were elected to the board, Kurz would ask them to replace the company’s new CEO Donald Barnes and recruit a new top executive who would “restore our company’s core values–simple products, stringent cost controls and prudent investments,” he wrote.
Earlier this week, Presidential Life filed a document with the U.S. Securities and Exchange Commission disclosing that the foundation, overseen by Kurz, had filed a tax return that failed to comply with Federal rules
“I believe that you will share my outrage that the current board has chosen to respond to my consent solicitation by launching what I see as a stream of vicious attacks on my family’s charitable foundation,” Kurz states in his letter. “For the record, the foundation and its advisors voluntarily approached the IRS many months ago,” which he noted was before he announced plans to ask other shareholders to replace the current directors with a new slate.