Meeting Adjourned

Dude, you're getting a settlement. Dell's shareholder meeting was adjourned early so that shareholders can consider the settlement of the SEC investigation of Michael Dell.

Image: Austin Business Journal

The Austin Business Journal reports: Today’s Dell Inc. annual stockholders meeting in Round Rock, Texas, came to an abrupt end when company officials adjourned until federal officials complete settlement discussions related to an investigation of CEO Michael Dell.

Forty-five minutes after it started, and before any votes could be taken or stockholders questions asked, General Counsel Larry Tu closed the meeting with an August 12 scheduled reconvening.

The sudden adjournment was done to allow stockholders time to consider information about the U.S. Securities and Exchange Commission’s possible settlement related to Michael Dell and allegations concerning the company’s disclosures and alleged omissions with chipmaker Intel Corp.

Meanwhile, Dell officials announced that the company and Michael Dell have proposed settlements to SEC staff and the staff has agreed to recommend the settlement to the SEC.

Last month, Dell revealed that it was reserving $100 million for the potential settlement of the investigation that began in 2005. A $100 million liability for the first quarter ended April 30 was established as a reserve fund.

In April, Dell reported an unknown number of former employees have received notices from federal regulators investigating unethical accounting and financial reporting matters for periods beginning in 2001.

The SEC provided the former employees with Wells notices in connection with the investigation. Such notices are typically issued by the SEC to alert companies that they are under investigation for unethical behavior in anticipation of an enforcement action.