Schwartz Investment Counsel, Inc. Urges Texas Pacific Land Corporation Board of Directors to Act on Shareholder Vote to Declassify the Board

Rhea-AI Summary

The Texas Pacific Land Corporation (TPL) Board has declined to implement a declassification proposal favored by 55.9% of shareholders in a vote held on December 29, 2021. Schwartz Investment Counsel, Inc., a significant shareholder owning over 74,000 shares worth more than $96 million, argues this refusal undermines shareholders' interests. TPL's current staggered board structure allows only one-third of directors to stand for re-election annually. Schwartz advocates for annual re-elections to enhance accountability and responsiveness to shareholder will.

Positive

• Schwartz Investment Counsel's push for declassification may lead to increased accountability and alignment with shareholder interests.

Negative

• The board's refusal to act on the shareholder-approved declassification proposal may alienate shareholders and raise concerns about corporate governance.
• The current staggered board structure allows board members to remain in position longer without facing re-election, potentially entrenching less favorable leadership.

PLYMOUTH, Mich.--(BUSINESS WIRE)-- The Texas Pacific Land Corporation (TPL) Board of Directors has refused to act on an advisory ballot proposal approved by 55.9% of shareholders. Despite the majority vote held on December 29, 2021, to declassify the Board of Directors, the Board has not taken action to do so.

Schwartz Investment Counsel, Inc., on behalf of clients, owns over 74,000 shares of TPL (approximately 1% of the shares outstanding) with a market value more than $96,000,000. Having invested in TPL since 2015, Schwartz Investment Counsel, Inc. is one of TPL’s largest shareholders and believes TPL’s board has a fiduciary obligation to implement the owners’ wishes. Schwartz Investment Counsel, Inc. believes doing so would clearly be in the best interest of the company and all its shareholders.

TPL currently has three classes of board members. If declassified, all directors would be required to stand for re-election yearly. Currently, only one-third of the board members stand for re-election each year. Schwartz Investment Counsel, Inc. is against staggered boards and believes they only serve to entrench board members, which is not in the best interest of all shareholders.

On December 29, 2021, Schwartz Investment Counsel, Inc., along with the majority of shareholders, voted to declassify, which the TPL Board has refused to do. We recommend that other TPL shareholders also encourage the Board to implement the declassification for which we owners have voted.

George P. Schwartz, Chairman & CEO
Schwartz Investment Counsel, Inc.

About Ave Maria Mutual Funds

Ave Maria Mutual Funds is the largest family of Catholic mutual funds in the U.S with nearly $2.9 billion in assets under management. The six no-load funds invest in companies that do not violate core values and teachings of the Catholic Church. The two largest funds are the $937 million Ave Maria Rising Dividend Fund (Ticker: AVEDX) and $912 million Ave Maria Growth Fund (Ticker: AVEGX). For more information about Ave Maria Mutual Funds, call 1-866-AVE-MARIA (866-283-6274) or visit www.avemariafunds.com.

About Schwartz Investment Counsel, Inc.

Schwartz Investment Counsel, Inc. is a Registered Investment Adviser. Founded in 1980, the Firm is headquartered in Plymouth, Michigan with a branch office in Ave Maria, Florida. In managing the Ave Maria Mutual Funds, investments are made only if companies meet the Funds’ financial and moral criteria. As such, returns may be lower or higher than if decisions were based solely on investment considerations. The Funds’ method of security selection may or may not be successful and the Funds may underperform or outperform the stock market as a whole. All mutual funds are subject to market risk, including possible loss of principal. For more information about Schwartz Investment Counsel, Inc., visit www.schwartzinvest.com.

As of 12–31–21, the holding percentages of Texas Pacific Land Corporation in the Ave Maria Mutual Funds were as follows: Ave Maria Bond Fund (1.3%), Ave Maria Focused Fund (1.8%), Ave Maria Growth Fund (0.6%), Ave Maria Rising Dividend Fund (3.9%) and Ave Maria Value Fund (9.7%). As of 12-31-21, the Schwartz Value Focused Fund had a 29.1% holding percentage in Texas Pacific Land Corporation. Fund holdings are subject to change and should not be considered purchase recommendations. There is no assurance that the securities mentioned remain in the Fund’s portfolio or that securities sold have not been repurchased.

Ave Maria Mutual Funds Prospectus

Request a prospectus, which includes investment objectives, risks, fees, charges and expenses, and other information that you should read and consider carefully before investing. The prospectus can be obtained by calling 1-866-283-6274 or it can be viewed at www.avemariafunds.com.

Schwartz Value Focused Fund Prospectus

Prospective investors should read the prospectus carefully and consider the Fund’s investment objectives, risks, charges and expenses carefully before investing. The prospectus, which can be obtained by calling 1-800-449-9240 or online at www.schwartzvaluefocusedfund.com, contains this and other important information.

Distributed by Ultimus Fund Distributors LLC. 14588187-UFD-03042022

Schwartz Investment Counsel, Inc. is not affiliated with Ultimus Fund Distributors, LLC.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220307005183/en/

Mike Richter, Director of Marketing

Schwartz Investment Counsel, Inc.

(734) 455-7810

mjr@schwartzinvest.com

Source: Schwartz Investment Counsel, Inc.

FAQ

What was the outcome of the shareholder vote on declassifying the TPL Board?

The proposal to declassify the TPL Board received approval from 55.9% of shareholders but has not been acted upon by the Board.

Who is advocating for the declassification of the TPL Board?

Schwartz Investment Counsel, Inc., one of TPL's largest shareholders, is advocating for the implementation of the declassification.

Why do shareholders want the TPL Board to be declassified?

Shareholders believe that declassifying the board would increase accountability, allowing all directors to stand for re-election annually, rather than retaining staggered terms.

How many shares does Schwartz Investment Counsel own in TPL?

Schwartz Investment Counsel owns over 74,000 shares of TPL, representing approximately 1% of the outstanding shares.