At Home Depot's annual meeting Relational Investors is expected to submit proxies to have its move adopted and may nominate directors for the retailer's board. Home Depot's directors say they are in opposition to the plan because they already support management's plans to increase shareholder value.

Home Depot will hold a meeting shortly after the first of the year to address the concerns of Relational and other shareholders. The investment firm owns just under 13 million shares of Home Depot's common stock, accounting for 0.6% of its total.

Home Depot's board points out that from 2000 to 2005, the company has nearly doubled sales, from $45.7 billion, to $81.5 billion. The company has also invested $29 billion back into the business since 2001.

During its most recently reported quarter, which ended Oct. 29, same-store sales fell 5.1% year over year. Total sales rose 11.3%, to $23.1 billion, while net earnings were flat, at $1.5 billion. Home Depot operates 2,127 units in North America and China.