http://today.reuters.com/business/ne...-DISNEY-DC.XML


Walt Disney Co. will require board members who fail to get majority support in company elections to submit letters of resignation, the company said on Thursday.

The Disney board's Governance and Nominating Committee would then recommend to the full board whether the resignation should be accepted, Disney said after the board adopted the new policy.

The company faced major shareholder protests over corporate governance practices early last year but recently mended fences with one of the leaders of the revolt, Roy Disney, nephew of the late Walt Disney, co-founder of the company.

The Disney board also amended the company's bylaws to add an anti-green mail provision, banning the repurchase of shares at above-market prices from any holder of more than 2 percent of Disney's voting securities without shareholder approval.

Board Chairman George Mitchell said the greenmail provision came in response to a shareholder proposal from the 2005 annual meeting.

In 2004, the Disney board stripped Chief Executive Michael Eisner of his chairmanship after 45 percent of shares were withheld in his re-election vote. Eisner is set to step down as CEO at the end of September.