The conflict at Tree Island Wire Income Fund (TSX:TIL.UN) has escalated with one of the fund's largest shareholders calling a special meeting to replace members of Tree Island's board of trustees.
The Futura Corp., which is led by Amar Doman, has called the meeting for March 4, 2008, over the objections of Tree Island's current board.
The board has said the meeting is unnecessary because Futura could have waited until the fund's scheduled annual general meeting to vote for new trustees rather than force it to incur additional costs from holding a special shareholder meeting.
Despite Doman's concerns over the fund's strategic direction, the board says its plan is showing signs of success and needs more time to be implemented.
Doman has criticized the company's decision to expand the business when Tree Island's main market, the U.S., is experiencing one of the worst housing downturns in 14 years.
Tree Island's share price range during the past week: between $4.21 and $4.71; 52-week high: $8.90; 52-week low: $3.65.