LONDON - Baillie Gifford US Growth Trust plc (USA) has received a requisition from a significant shareholder to hold a general meeting, the company disclosed Wednesday. The requisition aims to reduce the board size and replace several directors, including the appointment of two nominees from Saba Capital Management, L.P.
Barclays (LON:BARC) Capital Securities Client Nominee Limited, acting on behalf of Saba, has proposed to the company's board that a general meeting be convened. The proposed resolutions include decreasing the minimum number of directors to two and removing current directors Tom Burnet, Sue Inglis, Graham Paterson, Rachael Palmer, and Chris van der Kuyl.
In their stead, the requisition suggests the election of Boaz Weinstein, founder and Chief Investment Officer of Saba, and Miriam Khasidy as directors of Baillie Gifford US Growth Trust plc, effective from the end of the general meeting.
The board of Baillie Gifford US Growth Trust has advised shareholders to refrain from taking any action at present. It has expressed the view that the proposed changes are not in the best interest of shareholders and lack merit. The company plans to issue a more detailed response in an upcoming announcement, which will include the notice for the general meeting and an accompanying circular outlining the board's full position on the matter.
This development comes amid a backdrop of increasing shareholder activism, where investment firms seek to influence company management and policies they believe could enhance shareholder value. The board's response suggests a potential clash with Saba's intentions, signaling a contentious period ahead for the investment trust.
The information for this report is based on a press release statement from Baillie Gifford US Growth Trust plc.
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