Recall petition submitted for board members of Corinth-based CoServ

by Staff of Lantana Links

A consumer advocate group for CoServ Electric members has filed a petition to recall four of the seven directors on the CoServ board.

CoServ Watchdogs has collected 327 signatures in favor of removing board members Leon Pelzel, Clyde Geer, Jerry Cobb and Curtis Tally. Although only 300 signatures were required for the recall, the advocacy group plans to amend the petition with more names in the coming weeks, according to Watchdogs spokesperson Diania Hanson.

Hanson said that per Coserv's bylaws, the directors will have to conduct a hearing to face charges of violating their fiduciary duties at the co-op's upcoming annual meeting on June 23 at UNT Coliseum in Denton. An election to replace the directors will be held by mail-in ballot after the recall hearing, Hanson added.

CoServ officials submitted the following statement regarding the recall petition: "While CoServ is in the process of confirming the recall petition satisfies the requirements under CoServ's bylaws, this petition has no bearing on the director election process described in June’s Texas Co-op Power magazine. Once it is determined whether the recall petition is valid, CoServ Electric will determine the next course of action."

CoServ Watchdogs has characterized the four board members as the "Bankruptcy Directors" because they served on the same board that led CoServ to declare bankruptcy in 2001.

Hanson accused the directors for diverting member funds into speculative for-profit investments, instead of performing their fundamental duty of providing the members with the best deal on electricity.

"We need to clean up CoServ, like what should have been done after the bankruptcy. New brooms sweep best and it is time for some new directors that will be

responsible and responsive to the members," said Hanson.

Several Class Action Lawsuits have been filed by both CoServ's members and the co-op in the last few months.