Tenet Healthcare Corp. said it will revise its bylaws as part of an agreement with Glenview Capital Management LLC, its largest shareholder.
Changes include a revision of the special meeting bylaw so that it can be changed only through a vote from majority shareholders. The company also agreed to hold its annual meeting at least every 13 months and add a bylaw with a provision that allows the adoption of a shareholders rights plan only if approved by 75% of the board members.
The Dallas-based diversified healthcare services company said the changes will align its corporate governance with best practices.
Meanwhile, Glenview withdrew a proposal to amend Tenet bylaws that would have allowed shareholders to take action by written consent without a meeting. The asset manager also agreed to vote its shares in favor of all of Tenet's director nominees and support all of the board's proposals at the company's annual meeting.
Glenview holds a 17.72% stake in Tenet Healthcare.
In 2017, Glenview pulled out two of its nominations on the Tenet board, citing "irreconcilable differences regarding significant matters impacting Tenet and its stakeholders." Following the resignations, Tenet implemented a short-term shareholder rights plan to allow the board to protect shareholder interests.
Tenet operates hospitals, ambulatory surgery centers and other outpatient facilities in the U.S. and the U.K.