Atari, Inc. cannot get a break. Infogrames Entertainment, the parent of Atari, which has been struggling financially for a while (and is now reduced to a penny stock) failed to get the required 20% voter turnout at its special shareholders meeting which was set to approve the EUR 74 million refinancing of the company. This was the second attempt in getting the shareholders out and they give it another try on November 15th.
20% turnout is a very high threshold for a widely held stock and is even more difficult if the shareholders have lost faith in the management's ability to turn the company around. Typically, public companies only require two shareholders to turn out, either in person or in proxy. Rules about shareholder turnout (or qourum) are stated in the company bylaws or governing legislation. Infogrames is governed by the corporate laws of France.
Stay tuned for the next episode in the Atari saga.