Quality Systems Shareholder Questions Management

A major shareholder of Tustin-based Quality Systems Inc. expressed concern over the performance of the company’s current management and the structure of the board of directors, according to regulatory filings made Wednesday.

Investor Ahmed Hussein said he may try to elect his own representatives to the board of Quality Systems, which is mostly controlled by Sheldon Razin, the company’s founder, chairman, president and chief executive. Hussein owns 18.5% of the company, which develops and markets information systems for medical and dental group practices. Razin and his wife, Janet, own 24.4%.

The filing with the Securities and Exchange Commission also said Hussein wants to review the structure of the board’s nomination and compensation committees and that he may propose amendments to the company’s bylaws, which he “believes are designed to benefit incumbent management.”

The filing comes two weeks after Razin had a drawn-out argument with several leading shareholders over the company’s management during a quarterly conference call. Quality Systems has been battling for months with shareholders over the independence of its board of directors and recently lost a shareholder lawsuit that would require a shareholder vote on the board of directors’ independence at the company annual board meeting, traditionally held in September.

Razin said he believed the attacks against the company have been personal and unproductive. “These people are not concerned with our employees or our customers and I don’t think they have an appreciation of the business--they don’t have a clue,” Razin said.