By Svea Herbst-Bayliss

BOSTON (Reuters] -The fight for four new directors in hedge fund Starboard Value LP ended on Friday. Huntsman (NYSE.) Corp. Shares of U.S. specialty chemicals firm tumbled during early trading, as investors became aware.

Starboard owns 8.8% shares of Huntsman. It argued the chemical manufacturer requires a shakeup in order to increase its financial performance. According to the hedge fund, the CEO Peter Huntsman was also a captive of the company’s board. Huntsman is the father who founded the company back in 1982.

Huntsman countered, stating that it has the right people and plans to deliver strong returns. He pointed out its share price being close to all-time highs as well as its performance against peers.

Huntsman (a chemical company with a market value of $8.6 billion that produces products used in building materials and plastics) said that all its 10 director nominees have been reelected based upon preliminary results.

CEO Peter Huntsman released a statement, “The result of today’s shareholders vote validates our portfolio strategy”

Early trading saw a drop of nearly 12% on the shares.

Jeffrey Smith, CEO of Starboard, stated in a statement to Starboard that the preliminary results show less than half the outstanding shares backed Starboard’s nominees.

We hope the board will recognize that these expectations are not just for management to keep their promises but that they also demand that management be held accountable by the board.”

Starboard suffers its second consecutive shareholder vote defeat in less that a year. Starboard lost the September challenge by Box Inc to its cloud services provider Box Inc board seat.

Starboard had several former directors at Huntsman. LyondellBasell Industries (NYSE) CEO James Gallogly of Starboard’s Smith, Sandra Beach Lin, former executive in the industry, and Susan Schnabel former banker

Starboard has been a busy activist investor and won more board seats than any other activist, according to data.

Huntsman pledged last year to increase margins, return $1 billion to shareholders via share repurchases. He also promised to manage a sales process in its Textile Effects non-core unit and to not spend more than $500million on one acquisition.

Starboard raised concerns that Huntsman hadn’t made disclosures as recommended by Task Force on Climate Related Financial Disclosures, even though it was requested by investors two years prior.

Glass Lewis, a proxy advisory firm, backed every candidate for management, while Institutional Shareholder Services (another proxy advisory firm), said that change is warranted, and suggested that Starboard’s nominations be voted by investors.