Swiss asset manager General American Investors, Inc. is facing a rebellion initiated by a group of minority shareholders. They are concerned that as the major shareholder, French billionaire Xavier Niel, increases his stake to over 70% through a capital raise and plans to reshuffle the board, the influence of the remaining 30% minority shareholders will be completely eroded.

The board nominations have sparked controversy. According to proposals submitted by General American Investors, Inc. for its Annual General Meeting scheduled for May 12, the board is set for a shake-up: CEO Elmar Zumbült and Niel's son, John Niel, have both been nominated as new directors. Representatives for the minority shareholders argue that the board must not become a "family office" for the major shareholder, stating that the proposed structure would lead to the complete marginalization of the remaining approximately 30% of shareholders.

To balance influence, a group of minority shareholders holding about 2.5% of General American Investors, Inc.'s voting rights has formally nominated independent candidate Benedetta Arese Lucini for a board seat. With over 15 years of experience in fintech and regulated financial firms, her aim is to strengthen independent oversight at the board level. Although this nomination has been confirmed as valid by the board, General American Investors, Inc.'s official recommendation to shareholders is to reject the proposal, citing that the current six-member board is already sufficiently balanced and diverse.

Analysts point out that the core of this struggle is a governance issue. When faced with related allegations, General American Investors, Inc. declined to comment. With proxy advisors becoming involved and the shareholder vote approaching, this battle for control between major and minority shareholders is reaching a critical point.