Taylor Morrison Home Corp. is proposing to amend its certificate of incorporation to adopt a phased-in board declassification and fix the term of directors to one year.
The declassification will be phased in through the company's 2021 annual shareholder meeting such that all directors elected by shareholders will serve for a term of one year. Upon approval of the declassification, directors may be removed with or without cause via a majority shareholder vote.
The homebuilder said its board is recommending that shareholders vote in favor of the proposal at the company's annual meeting scheduled for May 30.
In January, the company decreased the size of its board to five directors from nine after some shareholders sold their stakes.