SOS investors reject suit against board-source

MADRID, June 29 (Reuters) - Shareholders in Spain's SOS Cuetara SOS.MC rejected a proposal to take legal action against the food company's board, a source close to SOS said on Monday.

But they did approve the removal from the board of the Salazar brothers, the company's former top executives.

"All the points on the agenda were approved, except for those put forward by Daniel Klein and Lucas Toran," the source said.

Klein and Toran, who hold a 9.8 percent stake in SOS and have seats on the board, had called for legal action to be taken against the whole board for granting a 212 million euros ($296.8 million) loan to the Salazar brothers.

Instead shareholders voted to throw Klein and Toran off the board, the source said.

Jesus and Jaime Salazar, former chairman and deputy chairman, were fired on April 30 after using the loan to set up investment vehicle Condor Plus to buy SOS shares and sell them to a sovereign wealth fund, although the sale never took place.

On June 3, SOS said it planned to take legal action against the Salazar brothers. (Reporting by Tomas Gonzalez; Writing by Judy MacInnes; Editing by David Holmes)