Feb 25, 7:14 AM ET
Nuveen Municipal Credit Opportunities Fund suspends control share by-law
On February 24, 2022, the Fund's Board of Trustees adopted an amendment suspending the by-laws' control share provision, which limits voting rights for holders who acquire common shares in a Control Share Acquisition unless other shareholders approve. The change follows a February 18, 2022 ruling in which the U.S. District Court for the Southern District of New York granted summary judgment to Saba Capital Management on its claims that the provision violates the Investment Company Act of 1940. The by-law would be automatically reinstated if that judgment is reversed or nullified, and the Board and the Funds intend to appeal, so shareholders' voting rights for acquirers may change depending on the appeal outcome.
- Board adopted Amendment No. 1 to the Amended and Restated By-Laws on February 24, 2022, suspending the Control Share By-Law.
- On February 18, 2022, the District Court granted Saba summary judgment on its claims for rescission and declaratory judgment.
- The Control Share By-Law would be reinstated automatically if the District Court judgment is reversed, overturned, vacated, stayed or otherwise nullified.
- The Board and the Funds intend to appeal the District Court's decision.