LONDON - CQS Natural Resources Growth and Income PLC (CYN), a London-listed investment company, is currently embroiled in a dispute with Saba Capital Management LP (Saba), a shareholder that has proposed a shake-up of CYN's board. The conflict intensified following a notice received on December 18, 2024, from Saba, demanding a general meeting to vote on the removal of CYN's current independent board of non-executive directors.
In a circular published on January 7, 2025, CYN's board issued a detailed counter-argument to Saba's suggestions, labeling them as "self-interested and misleading." The board is unanimously advising shareholders to vote against Saba's resolutions, citing concerns over the potential for Saba to gain undue control and act in its own interests, contrary to the broader shareholder community.
The board's stance is backed by regulations from the Financial Conduct Authority (FCA), which stipulate that the directors of an investment company must operate independently of any investment manager. CYN's board has expressed discomfort with Saba's proposals, suggesting they do not align with these requirements.
QuotedData, an independent research firm, examined the situation and concluded that Saba's plans for CYN could be detrimental to all shareholders except for Saba itself. Consequently, QuotedData is urging shareholders to participate in the upcoming vote to protect their investments.
The ongoing dispute highlights the importance of corporate governance and the role of shareholders in the oversight of investment companies. As the situation develops, the investment community will be watching closely to see how shareholders respond to the board's call to action.
This article is based on a press release statement and aims to provide an unbiased account of the events concerning CQS Natural Resources Growth and Income PLC and the proposed changes by Saba Capital Management LP.
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