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Sun adopts changes to corporate governance

Facing investor ire at its last annual shareholder meeting, company makes two changes to its corporate governance policy.

Sun Microsystems, which faced investor ire at its last annual shareholders meeting, has adopted two changes to its corporate governance policy.

Under the new policy, Sun will need shareholder approval, in most cases, to reinstate its shareholder rights plan, or poison pill. Poison pills act as a deterrent to unsolicited takeover bids. The company also amended its bylaws to require directors to receive more votes than those withheld during their election at the annual shareholders meeting. If existing directors fail to receive a majority vote, then the board will have the option of asking for their resignation.