Yahoo! Sets Annual Meeting for July 3

SAN FRANCISCO -- Yahoo!'sYHOO shareholders may get a chance to retaliate against the company's board of directors at its annual meeting on July 3.

MicrosoftMSFT withdrew its $33-a-share bid for Yahoo! on Saturday, sending shares for the Internet provider down 15% on Monday as investors grumbled over the botched merger. But on Tuesday, the stock was clawing back up, gaining as much as 6% in recent trading.

Some shareholders now see hope in a revived deal with MicrosoftMSFT while others are holding out for a relationship with GoogleGOOG that would allow Yahoo! to outsource its online search ads as a way to bump up revenue.

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Yahoo!, which had been stalling on a date for its annual meeting on the threat of Microsoft replacing its board of directors with a new slate that would favor a merger, now runs the risk of its own shareholders organizing a mutiny.

Shareholders have until May 15 to nominate a board of directors. In its announcement of the date for the annual meeting, the company did not disclose a site. Any effort to unseat the directors would be a costly endeavor, however, especially now that Yahoo!'s stock has regained some ground.

Activist shareholder Eric Jackson, who had been urging Yahoo! to accept a deal with Microsoft, is calling for shareholders to unseat the existing 10 members on the board, all of whom are up for election.

"I think it's a remote possibility that every director can be voted off this board," Jackson says. "But there is such anger about what's happened over the weekend, I think it's possible. If that were to happen, it would be a complete and utter embarrassment for each and every director."