Feb 25, 6:23 AM ET
Nuveen Core Equity Alpha Fund suspends control share by-law after court ruling
The fund's Board adopted Amendment No. 1 to its by-laws on February 24, 2022, suspending the control share provision after the U.S. District Court for the Southern District of New York granted summary judgment to Saba Capital Management on February 18, 2022. The amendment provides that the provision has no force and effect while the court judgment is in effect, and it will be automatically reinstated if that judgment is reversed or nullified. The Board and the fund intend to appeal the District Court's decision, so the outcome could affect shareholder voting rights in control share acquisitions.
- Board adopted Amendment No. 1 to the Amended and Restated By-Laws on February 24, 2022.
- The control share provision lets a shareholder who acquires common shares in a control share acquisition vote those shares only if other shareholders approve.
- Saba Capital Management filed a civil complaint on January 14, 2021, alleging the provision violates Section 18(i) of the Investment Company Act of 1940.
- The Board and the fund intend to appeal the District Court's decision.