Laser Medical Replaces 4 Directors, Avoids Proxy Fight Over Leadership

Officials at Laser Medical Technology Inc. said Friday that they have averted a proxy battle over the makeup of the company’s board of directors.

As part of the settlement, four directors have been replaced and two of them--the company’s president and its chief executive--have been reassigned to lesser executive posts.

Former President Philippe Levy will now be vice president of marketing; and former Chief Executive Officer Francois Levy will become chief operating officer. The two are sons of company founder Guy Levy.

Guy Levy also executed a six-year agreement that calls for him to remain a full-time employee of the company for up to three years and a part-time employee or consultant for the balance of the period. Levy, 56, owns almost 40% of the company’s shares outstanding.

The settlement avoids a proxy battle threatened by a shareholder committee formed by two dissident directors who said there were too many company insiders on the board.

One of the dissidents, Jehu Hand, will resign from the board as part of the agreement, which calls for the election by the end of March of four new outside directors to succeed Hand, the Levy brothers and company consultant Don Ahrens.

Remaining on the board are Guy Levy; outside director Richard Keates; company consultant Shirley McGarvey; and investment banker and dissident director Federico Pignatelli, whose company has helped finance Laser Medical.

The company also said Friday that its annual shareholder meeting will be in April.

Laser Medical, based in San Clemente, makes dental surgical devices. Its stock, which trades on the NASDAQ market, closed Friday at $3.125 a share, up 12.5 cents.