Two proposals submitted by unhappy shareholders of Scios Nova Inc.and placed on the company's proxy statement were defeated at thecompany's annual shareholder meeting on Tuesday.One proposal that would have required that Mountain View, Calif.-based Scios Nova's board of directors appoint a committee toimmediately begin searching for a buyer of the company was defeatedby a vote of 83 percent to 16 percent, with 1 percent of stockholdersabstaining. The second proposal requiring that the chairman of theboard be independent, and not a member of company management wasdefeated, 76 percent to 22 percent, with 2 percent of stockholdersabstaining. (Scios Nova's CEO Richard Casey serves concurrently aschairman of the board.)Gary Paulzak, a stockbroker from Mary Esther, Fla., who ownsroughly 8,600 of the approximately 35 million shares of Scios Novastock outstanding, submitted the proposal to require the company'sboard to search for a corporate buyer. A press release stated that hebelieves a change in current management is the cure for Scios Nova'sills. Paulzak blames management for the persistent under performanceof the company's stock. "Long-term investors to date have been long-term losers," complained Paulzak's release. The proposal to separatethe functions of chief executive officer and chairman of the board wassubmitted by Sharon Olson, also of Mary Esther, Fla., who owns 200shares of stock in the company."When you're dealing with something like this that is new(stockholder-sponsored proposals) you take it very seriously," saidScios Nova spokeswoman Kira Bacon. "But we believed that the boardof directors had strong and legitimate reasons for recommending thatstockholders vote against those proposals." _ Lisa Piercey
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