Avalon Correctional nominates two for election to Providence's board

By Lisa Kerner

Charlotte, N.C., May 1 - Avalon Correctional Services Inc. and its affiliates filed preliminary proxy materials seeking the election of Michael C. Bradley Jr. and retired U.S. Navy captain Brian T. Costello as directors of Providence Service Corp. at the company's 2009 annual meeting, it was reported in a schedule 13/A filed on Friday with the Securities and Exchange Commission.

According to the filing, Providence did not respond to Avalon's letter and nomination dated Feb. 19.

In March, Avalon dropped its consent solicitation against Providence.

As previously reported, the Providence Committee for Accountability, which includes Avalon, said it was withdrawing its stockholder consent solicitation after Providence's board of directors unanimously approved changes to the company's bylaws.

Providence's board approved specific corporate governance enhancements including bylaw amendments that adopt and implement a majority standard for the election of directors in uncontested elections, make it easier for stockholders to call a special meeting of stockholders and make it easier for stockholders to nominate candidates for election at the company's annual meetings, a prior company news release said.

Avalon wanted to change Providence's bylaws to prevent the company from, among other thing, obtaining background information on board candidates, Providence said previously.

Providence had denied Avalon's request to inspect and copy some of the company's books and records and accused Avalon of conducting a "fishing expedition."

Oklahoma City-based Avalon owns and operates private community correctional facilities and correctional programming.

Providence is a Tucson-based provider of home- and community-based social services to government-sponsored clients under programs such as welfare, juvenile justice, Medicaid and corrections.

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