Excessive Option Plan - Question

[sculpin]

I currently own a Canadian public company with 14.3 million shares outstanding. Currently this Company has 1.7 million options issued and outstanding which is about 12% of the number of shares outstanding. I have always thought that 10% should be the maximum percentage that options should be of the shares outstanding.

 

Now to my disbelief the Company has issued in its circular a change to the corporations stock option plan which would allow it increase the number of new options that it can issue by 2.1 million - another 15.2% as a percentage of the outstanding shares. Combined with the options already issued and the new options which could be issued, the Company could end up issuing over 27% of the shares out in the form of options.

 

Has anyone seen such a large percentage of options in a public Company in either the US or Canada? Has anyone had success defeating such a motion or has there been any legal fight that has been successful in such a case?

 

The Company is International Road Dynamics on the Toronto Stock Exchange and has a market cap about $14 million and sales revenue of $45 million & currently profitable.

 

Thx