Jun 16, 4:09 PM ET
BlackRock MuniHoldings Fund settles Karpus and Goldstein proxy dispute, withdraws nominations
BlackRock MuniHoldings Fund and 13 other BlackRock closed-end funds reached an agreement on June 15, 2011 with Karpus Management and the Bulldog/Brooklyn Funds, which withdrew their director nominations and shareholder proposals for the 2011 annual meetings and ended the Delaware litigation. The agreement also sets conditions under which a designee chosen by the dissidents could join a fund's board in 2012 if its auction rate preferred shares are not redeemed.
- Karpus and the Bulldog/Brooklyn Funds withdrew their 2011 director nominations and shareholder proposals, and agreed to vote in favor of board nominees at the 2011 and 2012 annual meetings.
- Standstill and non-disparagement covenants run until the day after the 2014 annual meetings for the Funds, and until after the 2012 meetings for the other BlackRock funds.
- The Funds agreed to reimburse up to $150,000 in aggregate documented legal and proxy solicitation fees.
- If a fund's auction rate preferred shares are not all redeemed two weeks before its 2012 proxy mailing, the dissident party may designate one board candidate, subject to the board's approval.