SPAR Group (SGRP) said Wednesday that founder Robert G. Brown's claims about the company and board are false.
The company said Brown demanded $15 million in cash, $900,000 a year in consulting fees, and a long-term deal for his defunct business, among other personal benefits.
SPAR added that Brown's proposals would benefit only himself and not all shareholders. The board noted that Brown has a history of actions that disrupted management and led to the resignation of independent directors and CEOs.
Brown still has significant influence on the board, with two dedicated seats for his representatives, but has chosen not to serve as a director himself, the company added.
SPAR Group addressed Brown's specific claims, stating the company is following its by-laws, SEC, and Nasdaq rules, according to the company statement.
SPAR Group said it is in arbitration with Brown over alleged breaches of a previous agreement and believes it is in a strong position.
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