Proactive Investors - Autodesk Inc (NASDAQ:ADSK), the software firm, is facing pressure from US hedge fund and activist investor Starboard Value after it built a US$500 million stake in the Nasdaq-listed group.
Starboard is now pushing for changes at the design-software developer, arguing its margins need elevating and the board requires a reshuffle, a report from the Wall Street Journal revealed.
Executives at Autodesk are said to have recently met with the activist investor, where it voiced concerns regarding operations, corporate governance and how the company dealt with a recent accounting probe that tanked the stock.
Starboard had been vocal in its private meetings with Autodesk for failing to disclose certain updates including the investigation until after the period to nominate director candidates closed in March.
It said it is now considering launching legal action against Autodesk to have the director nomination window re-opened and the annual general meeting delayed past its current July 16 date.
Back in April, Autodesk opened an internal investigation into the way it deals with free cash flow and operating margins.
Autodesk claimed it keeps an open door for dialogue with shareholders and welcomes input from them.
"We are confident in our strategic direction, significant margin opportunity, and our corporate governance," Autodesk added.
Shares in the software group are set to open in the US later today up around 4%.