UPDATE 1-SOS investors reject suit against board

(Adds confirmation)

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 but did approve the removal of the company's former top executives.

The annual shareholders' meeting voted to dismiss the Salazar brothers, the company's former top executives, from the board, as well two other investors, Daniel Klein and Lucas Toran, the company said in a stock market statement.

Klein and Toran, who hold a 9.8 percent stake in SOS and had 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.

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. ($1=.7143 Euro) (Reporting by Tomas Gonzalez; Writing by Judy MacInnes; Editing by David Holmes and Gerald E. McCormick)