Beneficial Ownership, Equity Swaps, and Proxy Contests: CSX v. The Children's Investment Fund (The Second Circuit Rules) (Part 16)
The sturm und drang at CSX continues. The company has indicated that it may take a month to develop a final tally. Because directors serve for one year or until their successor has been elected, this extends the time period for the incumbents. The delay, perhaps coincidentally, takes the company past the deadline for filing the last brief in the appeal before the Second Circuit. The panel gave the parties until July 25 to finish the briefing, with oral argument scheduled the following week. Delay, therefore, decreases the amount of time the insurgents will sit on the board (assuming they win any of the contested seats) before the Second Circuit rules. For a post on the legality of the delay, take a look at the one by Steve Davidoff at Dealbook.