Herald Investment trust issued a warning alongside its notice of an annual general meeting today, with the trust’s board fearing that Saba Capital “may vote against the continuation resolution in order to trigger a potential winding-up”.
The trust recognised that it has received no feedback from any major shareholders that would constitute a windup. Saba’s resolution to replace the board of Herald Investment trust on 22 January did not pass, and was succeeded by failed resolutions at six other investment trusts.
Herald Investment trust’s concern for the vote comes due to the large amount of the trust that is held by Saba, which consisted of 29.1% of the trust’s shares as of 15 January.
Although the trust held a continuation vote at its requisitioned meeting on 22 January, they are required to hold another vote at its AGM. The trust also has the practice of having all board members ‘retire’ at the AGM, and those looking to continue on the board nominate for election or re-election.
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“Given Saba’s large holding there is a risk that the continuation resolution is blocked by just one shareholder,” the release stated.
“Your board continues to believe that the continuation of the Company with its current strategy is in the best interests of Shareholders as a whole. In addition, the Directors firmly believe that the independent Board continues to play an important role in defending Shareholders’ interests.”
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Saba has been contacted for comment.
Herald Investment trust’s AGM will be held on 24 March, with forms of proxy vote due 20 March.