Edward Smolyansky and Ludmila Smolyansky File Definitive Consent Statement to Replace Entire Board of Lifeway Foods (NASDAQ: LWAY)
Edward and Ludmila Smolyansky, controlling approximately 23.2% of Lifeway Foods (NASDAQ: LWAY) shares, have filed a definitive consent statement with the SEC to remove the entire current board of directors, including CEO Julie Smolyansky.
The shareholders are pursuing four key proposals: repealing recent bylaw amendments, removing current directors, electing seven new board members, and prohibiting immediate family employment in executive positions. The new slate of nominees brings expertise in governance, finance, operations, and consumer products.
Edward Smolyansky criticizes the current board for disregarding shareholder feedback, lacking strategic direction, and rewarding failure. The Board Removal and Director Election proposals are conditionally linked to ensure continuous leadership during transition.
Edward e Ludmila Smolyansky, che detengono circa il 23,2% delle azioni di Lifeway Foods (NASDAQ: LWAY), hanno presentato una dichiarazione di consenso definitivo alla SEC per rimuovere l'intero consiglio di amministrazione attuale, inclusa la CEO Julie Smolyansky.
Gli azionisti stanno proponendo quattro punti chiave: annullare le recenti modifiche allo statuto, rimuovere gli attuali direttori, eleggere sette nuovi membri del consiglio e vietare l'impiego di familiari diretti in posizioni esecutive. La nuova lista di candidati offre competenze in governance, finanza, operazioni e prodotti di consumo.
Edward Smolyansky critica il consiglio attuale per aver ignorato il feedback degli azionisti, per la mancanza di una direzione strategica e per aver premiato l'insuccesso. Le proposte di rimozione del consiglio e di elezione dei direttori sono collegate condizionalmente per garantire una leadership continua durante la transizione.
Edward y Ludmila Smolyansky, que controlan aproximadamente el 23,2% de las acciones de Lifeway Foods (NASDAQ: LWAY), han presentado una declaración de consentimiento definitivo ante la SEC para destituir a toda la junta directiva actual, incluida la CEO Julie Smolyansky.
Los accionistas proponen cuatro puntos clave: revocar las enmiendas recientes al reglamento interno, remover a los directores actuales, elegir a siete nuevos miembros de la junta y prohibir el empleo de familiares directos en cargos ejecutivos. La nueva lista de candidatos aporta experiencia en gobernanza, finanzas, operaciones y productos de consumo.
Edward Smolyansky critica a la junta actual por ignorar la opinión de los accionistas, carecer de dirección estratégica y premiar el fracaso. Las propuestas de remoción de la junta y elección de directores están vinculadas condicionalmente para asegurar un liderazgo continuo durante la transición.
에드워드와 루드밀라 스몰얀스키는 약 Lifeway Foods (NASDAQ: LWAY)의 23.2% 주식을 보유하고 있으며, 현재 이사회 전원을 해임하기 위해 SEC에 최종 동의서를 제출했습니다. 여기에는 CEO 줄리 스몰얀스키도 포함됩니다.
주주들은 네 가지 주요 제안을 추진하고 있습니다: 최근 정관 개정안 철회, 현 이사 해임, 7명의 신규 이사 선출, 그리고 직계 가족의 임원직 고용 금지. 새로운 후보 명단은 거버넌스, 재무, 운영 및 소비재 분야의 전문성을 갖추고 있습니다.
에드워드 스몰얀스키는 현 이사회가 주주 의견을 무시하고 전략적 방향성이 부족하며 실패를 보상한다고 비판합니다. 이사회 해임과 이사 선출 제안은 전환 기간 동안 지속적인 리더십을 보장하기 위해 조건적으로 연계되어 있습니다.
Edward et Ludmila Smolyansky, détenant environ 23,2 % des actions de Lifeway Foods (NASDAQ : LWAY), ont déposé une déclaration de consentement définitive auprès de la SEC pour destituer l'ensemble du conseil d'administration actuel, y compris la PDG Julie Smolyansky.
Les actionnaires poursuivent quatre propositions clés : abroger les récents amendements aux statuts, retirer les administrateurs actuels, élire sept nouveaux membres du conseil et interdire l'emploi des membres de la famille proche à des postes exécutifs. La nouvelle liste de candidats apporte une expertise en gouvernance, finance, opérations et produits de consommation.
Edward Smolyansky critique le conseil actuel pour avoir ignoré les retours des actionnaires, manquer de direction stratégique et récompenser l’échec. Les propositions de retrait du conseil et d’élection des administrateurs sont conditionnellement liées afin d’assurer un leadership continu pendant la transition.
Edward und Ludmila Smolyansky, die etwa 23,2% der Lifeway Foods (NASDAQ: LWAY) Aktien kontrollieren, haben eine endgültige Zustimmungserklärung bei der SEC eingereicht, um den gesamten aktuellen Vorstand, einschließlich CEO Julie Smolyansky, abzusetzen.
Die Aktionäre verfolgen vier zentrale Vorschläge: Aufhebung kürzlicher Satzungsänderungen, Abberufung der aktuellen Direktoren, Wahl von sieben neuen Vorstandsmitgliedern und ein Verbot der Beschäftigung von unmittelbaren Familienangehörigen in Führungspositionen. Die neue Kandidatenliste bringt Fachwissen in den Bereichen Governance, Finanzen, Betrieb und Konsumgüter mit.
Edward Smolyansky kritisiert den aktuellen Vorstand dafür, dass er das Feedback der Aktionäre ignoriert, keine strategische Ausrichtung hat und Misserfolge belohnt. Die Vorschläge zur Abberufung des Vorstands und zur Wahl der Direktoren sind bedingt verknüpft, um während der Übergangsphase eine kontinuierliche Führung sicherzustellen.
- Potential for improved corporate governance with independent board members
- New proposed board brings diverse expertise in finance, operations, and consumer products
- Initiative aims to increase transparency and shareholder value
- Proposed bylaw changes would limit nepotism in executive positions
- Risk of leadership disruption during board transition period
- Potential for costly and distracting proxy battle
- Internal family conflict could negatively impact company operations
- Uncertainty about new board's ability to execute strategic changes
Insights
Major shareholder battle at Lifeway Foods as 23.2% owners seek to replace entire board, signaling deep governance crisis.
This filing represents a significant escalation in what appears to be a family power struggle at Lifeway Foods. Edward and Ludmila Smolyansky, controlling
The proposal package is comprehensive and strategically structured: it seeks to nullify recent bylaw amendments (potentially defensive measures), remove all current directors including CEO Julie Smolyansky (apparently a family relation), install seven new directors, and implement anti-nepotism provisions. The conditioning of the removal and election proposals ensures governance continuity, demonstrating tactical sophistication.
The consent solicitation process bypasses the typical annual meeting framework, allowing shareholders to act without waiting for the next scheduled meeting. This mechanism is rarely used except in cases of extreme dissatisfaction with current leadership.
The statements from Edward Smolyansky suggest breakdown in communication channels between major shareholders and current leadership. His language regarding "entrenched, self-serving control" points to possible governance dysfunction, though without specific operational or financial grievances detailed.
This battle represents a material governance risk for Lifeway, with potential for operational disruption during any leadership transition. The familial connections between the challengers and current leadership add complexity and suggest deep organizational discord that extends beyond typical shareholder-board tensions.
Mr. Smolyansky and Mrs. Smolyansky are seeking shareholder approval on four proposals: to repeal any bylaw amendments adopted after March 24, 2023; to remove all current directors, including CEO and Chair Julie Smolyansky; to elect a new board of seven highly qualified nominees who collectively have deep experience in governance, finance, operations, and consumer products; and to amend Lifeway's by-laws to prohibit it from employing or engaging any immediate family member of its President or Chief Executive Officer. The Board Removal and Director Election Proposals are conditioned on one another to ensure continued board leadership during the transition.
"It is apparent to us that the current board has no intent to engage with us. We believe this consent solicitation is the most direct and effective way to return Lifeway to the people who actually own it," said Edward Smolyansky. "The company's circumstances demand bold, unprecedented action. We must end entrenched, self-serving control and bring in leadership that will act in the best interests of all shareholders."
"We believe that the board has repeatedly disregarded shareholder feedback, failed to articulate a credible strategy, and chosen to reward failure. It's clear to us that this board cannot be trusted to lead Lifeway forward," said Edward Smolyansky.
For more information, and to contact us, visit FreeLifeway.com.
Important Information and Where to Find It
This communication is not a request for a proxy to vote on, or shareholder consent with respect to, any matter. Any written solicitation of a proxy or shareholder consent by Mr. Smolyansky or Mrs. Smolyansky will be made through a definitive proxy statement or definitive consent statement, including the definitive consent statement filed by them with the SEC on July 2, 2025 (the "Consent Statement"), which will be delivered or given to requisite shareholders. Lifeway shareholders are urged to read the Consent Statement, including any amendments or supplements thereto, and any other soliciting materials, when they become available because they will contain important information. Shareholders may obtain, free of charge, copies of the Consent Statement, and other relevant documents, at www.sec.gov.
Participants in the Solicitation
Mr. Smolyansky and Mrs. Smolyansky filed the Consent Statement with the SEC on July 2, 2025, which relates to, among other matters, their intent to seek shareholder consents to remove Lifeway's current board of directors and elect each of Ludmila Smolyansky, Edward Smolyansky, Richard Beleutz, Cindy Curry, Michael Leydervuder, George Sent and Robert Whalen (each, a "Nominee") as directors of Lifeway. In addition, Mr. Smolyansky filed a preliminary proxy statement with the SEC on April 16, 2025, relating to his intent to nominate each Nominee for election as directors of Lifeway at its 2025 annual meeting of shareholders. Each Nominee may be deemed to have an interest in any solicitation of written consents or proxies by Mr. Smolyansky and Mrs. Smolyansky, as applicable.
The participants (the "Participants") in any solicitation of shareholder consents or proxies by Mr. Smolyansky or Mrs. Smolyansky may be deemed to be Mr. Smolyansky, Mrs. Smolyansky and each of the other Nominees. Lifeway shareholders can obtain information regarding the Participants and their direct and indirect interests, by security holdings or otherwise, in Appendix B to the Consent Statement, which information is incorporated herein by reference.
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SOURCE Edward and Ludmila Smolyansky
FAQ
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