Liquid Audio said that Seymour Holtzman and James A. Mitarotonda, the nominees of the group of investors led by MM Companies, had been elected to the board at a shareholders meeting two weeks ago.
The dissident shareholders have beenwith management over the future of the business. The MM group basically wants to liquidate the Redwood City, Calif., company and save its cash assets.
Liquid Audio recently announced plans todigital-encoding patents to Microsoft for $7 million in cash, and has agreed to a proposed with Alliance Entertainment. A representative for the company said the vote should not have any effect on either the sale or the merger.
The dissident board members hadin the election last week, but company management demanded to review the voting process. Another dissident proposal to expand the number of seats on the board did not pass.