Bancorp Rhode Island refuses PL Capital Group's demand

By Lisa Kerner

Charlotte, N.C., Aug. 8 - Bancorp Rhode Island, Inc. said it will not accept the demand for a derivative proceeding made by PL Capital Group's Richard J. Lashley in his June 11 letter to the company's board of directors.

Lashley demanded an investigation into possible violations of securities laws and company policies related to elections at Bancorp Rhode Island's 2008 annual meeting.

Bancorp's special committee of three independent directors authorized a law firm to conduct an investigation "to determine whether any omissions, misstatements, misrepresentations or selective non-public disclosures occurred as referenced in the demand letter," it was reported in a form 8-K filed with the Securities and Exchange Commission.

The special committee reviewed the results of the investigation and determined it would not be in the best interests of Bancorp Rhode Island or its shareholders to accept Lashley's demand, it was noted in an Aug. 8 letter to the shareholder.

In May, Bancorp Rhode Island's director nominees were elected to the board over the three nominees put forth by PL Capital, it was previously reported.

Bancorp Rhode Island is based in Providence, R.I., and is the holding company for Bank Rhode Island, which provides commercial banking services.

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