Liberty Tax Inc. directors Steve Ibbotson and John Garel have resigned from the company's board, effective immediately, according to separate SEC filings Dec. 18.
Ibbotson was the chair of the compensation committee and was a member of the audit committee and the nominating and corporate governance committee, while Garel was the chair of the nominating and corporate governance committee and was a member of the audit and compensation committees of the company.
Ibbotson stated in his resignation letter dated Dec. 15 that his decision was due to his concerns with the actions of Liberty Tax Chairman and former CEO John Hewitt as the sole holder of the class B common stock and voting control at the board level.
"I made the decision to resign because I materially disagree with certain aspects of how the company is being managed by Mr. Hewitt as a result of his rights as the sole holder of the class B common stock and voting control at the board level," Ibbotson said.
"Despite my best efforts, I no longer believe that I can have a meaningful influence on the management of the company, and accordingly, I no longer believe that I can be an effective member of the board of directors in serving the interests of shareholders and therefore am compelled to resign."
Similarly, Garel said his departure was a result of his continued concerns with the combined actions of Hewitt and other class B directors who were appointed by Hewitt.
"The class B directors are acting in unison through Mr. Hewitt's class B rights and are, in my judgment, unwilling to consider input that interferes with their objectives, with which I materially disagree," Garel stated in his resignation letter dated Dec. 18.
"It is now incumbent upon me to notify the board and the stockholders that I am no longer able to exercise my director responsibilities, and that the combined actions of the class B directors have put an end to my tenure as an independent director by rendering the remainder of my term as mere form over substance."