Following an agreement reached with one of its major shareholders, Vadnais Heights-based Angeion Corporation has replaced two of the seven directors on its board and will soon name someone to replace a third recently departed director, the company said Thursday.

Mark W. Sheffert, chairman and CEO of Manchester Companies, Inc., and Robert Munzenrider-who has held top positions at St. Jude Medical, Inc., and Apogee, Inc.-have both been elected to serve on Angeion's reconstituted board. Both men have previously served on numerous corporate boards.

Sheffert brings to his seat previous experience on Angeion's board, having served as chairman and director of Medical Graphics Corporation from January 1997 to December 1999, when that company was acquired by Angeion. Following the acquisition, Sheffert served on Angeion's board until late 2002.

Angeion directors K. James Ehlen, Paula R. Skjefte, and John C. Penn recently resigned their seats as part of an agreement reached between Angeion and BlueLine Partners, LLC.

Last month, Danville, California-based BlueLine-which owns 7.2 percent of Angeion's outstanding shares-sought to arrange a special shareholder meeting in order to garner the necessary support to install new board members. BlueLine claimed in a regulatory filing that the current members weren't doing enough to improve the medical technology company's financial performance.

“There are good people on Angeion's board, but they have not been effective in representing or pursuing the interests of the company's shareholders,” BlueLine said in the filing.

BlueLine claimed that while the value of Angeion's stock declined 67 percent from the beginning of 2007 to 2009, average pay for board directors jumped from $36,959 to $74,675 during that same period. According to BlueLine, the value of Angeion's outstanding stock totals just $5 million above the amount of cash that the company currently has on hand.

Shortly after BlueLine submitted its filing, Angeion issued a brief response to the allegations, saying that its board of directors had “identified false and misleading statements.” However, Angeion agreed about a week later to would replace three of its seven board members.

BlueLine Partners Managing Director Scott Shuda, who has served on Angeion's board since March, will retain his seat along with three other current directors-Angeion CEO and President Rodney A. Young, John R. Baudhuin, and Philip I. Smith.

Angeion, founded in 1986, designs and markets noninvasive cardiorespiratory diagnostic systems that are sold under the MedGraphics and New Leaf brand and trade names. For the year that ended October 31, 2009, Angeion reported a net loss of $1.6 million on revenues of $25.5 million.