Feb 25, 6:53 AM ET
Nuveen S&P 500 Dynamic Overwrite Fund suspends control share by-law after court ruling
On February 24, 2022, the fund's Board of Trustees amended the by-laws to suspend the control share provision, which would have limited voting rights for holders who acquired a control share stake unless other shareholders approved. The change follows a February 18, 2022 U.S. District Court summary judgment for Saba Capital Management on its claims that the provision violates the Investment Company Act of 1940. The Board and the funds intend to appeal, and the provision will be reinstated automatically if the judgment is reversed or otherwise nullified.
- Board adopted Amendment No. 1 to the by-laws on February 24, 2022, suspending the control share provision.
- U.S. District Court for the Southern District of New York granted summary judgment for Saba on February 18, 2022, on its claims for rescission and declaratory judgment.
- The control share by-law reinstates automatically if the court judgment is reversed, overturned, vacated, stayed or otherwise nullified.
- The Board and the funds intend to appeal the District Court's decision.