Deborah Bielicke Eades, Vedder Price Shareholder and member of the firm’s Investment Services group, was recently quoted in the Board IQ article “Activist Takes Aim at Governance in CEF Fights.”

The article explores Saba Capital’s attempt to nominate board members to closed-end funds managed by BlackRock, with Saba criticizing BlackRock’s governance practices and BlackRock defending its corporate governance measures. The outcome of this dispute and related legal cases could affect the use of defense mechanisms by closed-end funds and shape the behavior of activist investors.

Ms. Eades emphasized the potential impact of these ongoing legal cases on the use of control share provisions as defense tactics by closed-end funds, suggesting that unfavorable outcomes may lead many boards to reconsider and remove such provisions to avoid prolonged activist campaigns. She also cautioned against a surge in relocating to states with control share statutes.

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