AlphaServ.com’s Plans on Hold

In politics, low voter turnout can mean a miscarriage of democracy. In the corporate world, it means business doesn’t get done.

Santa Ana-based AlphaServ.com said Tuesday that just more than a third of its common shares were voted at its annual meeting in June, forcing the postponement of the company’s plans to reincorporate in Delaware.

That’s less than a typical turnout in an off-year political election. California laws require that at least half of a company’s shares be voted in a referendum of this type. Of those that did vote, 96% were cast in favor of the move, company officials said.

The company, which had hoped to take advantage of Delaware’s less restrictive corporate governance laws, said it will reconsider the issue next year or at a special shareholders meeting.

Companies prefer incorporations in Delaware because that state’s laws limit the personal monetary liability of directors; do not afford minority shareholders some of the rights and protections available under California law; and generally provide more predictability in corporate governance matters.

AlphaServ.com, which provides Internet consulting and networking, also wanted to reincorporate in Delaware to include stronger anti-takeover provisions.

AlphaServ.com shares fell 9 cents, or 3%, in Nasdaq trading Tuesday, to $3.22. Last year, the company posted its fourth consecutive annual deficit, losing $9.5 million on $24.1 million in sales.