Cambridge Heart Inc. is urging stock holders to approve a plan that limits board members to one-year terms when it convenes its annual shareholders meeting at the end of the month.
The Tewksbury-based non-invasive cardiac diagnosis device maker wants to change its corporate rules to eliminate its staggered board structure, in which members serve three-year terms.
The change is the result of a settlement of a 2008 proxy challenge from New Jersey-based AFB Fund LLC. According to company filings with the Securities and Exchange Commission, the challenge by AFB called for four-year term limits for board members and a seat on the board for Louis Blumberg.
The resulting settlement expanded the board to include Blumberg and called for a shareholder’s vote on the new corporate structure.
The AFB fund owns about 7 percent of Cambridge Heart’s stock.