(Telecompaper) Microsoft has agreed to cooperate with its shareholder ValueAct, offering the investor a seat on the company's board. The San Francisco-based investment firm owns 0.8 percent of Microsoft's shares, making it one of the company's largest shareholders. The cooperation agreement provides for regular meetings between Mason Morfit, president of ValueAct Capital, and Microsoft directors and management to discuss a range of business issues. The agreement also gives ValueAct Capital the option of having Morfit join the Microsoft board of directors beginning at the first quarterly board meeting after the 2013 annual shareholders meeting. In exchange, ValueAct has agreed to not increase its stake in the company above an agreed level, nor mount a proxy battle to try and gain control of the company's board. The agreement comes ahead of the annual shareholders meeting in October.