In what is a resounding victory for shareholder engagement and protecting the rights of all shareholders, Herald’s requisitioned general meeting has seen the proposals by Saba Capital LLC to remove all of the existing board and replace them with just two of its own representatives voted down convincingly.

At today’s meeting, Herald shareholders voted against Saba’s proposals by 65.1% to 34.9%. The turnout was 80.6%.

Many shareholders turned up at the meeting to express their displeasure at Saba and question the board. Investors in the room seemed genuinely angry with the attack on the trust. Some expressed their frustrations with the difficulty of voting though platforms. [A victory for ordinary shareholders. Shareholders are always welcome at AGMs and EGMs, directors care what you think and you get to question them in person – this is the beauty of the investment trust structure. However, platforms need to change their systems so that turnouts are much higher.]

Saba had previously indicated that its Paul Kazarian would be present for the vote but, possibly in a sign that Saba had already come to realise that it had bitten off more than it could chew, neither of Saba’s nominated directors were present on the day. Not surprisingly, fellow shareholders called Saba out for its lack of attendance, although this was just one of a raft of criticisms levelled at the US hedge fund. [That Saba’s nominated directors did not even show up for the meeting they demanded feels to us to be yet another indication that they are not fit persons to run the company.]

The board noted that it has had to incur considerable costs to fight off Saba.

[Let us hope that today’s win augurs well for the other votes. However, it is important not to be complacent, every vote will count, make sure you get to have your say. Also remember that Herald will also need your support at future meetings.]

Just 0.15% of non-Saba shareholders voted for its proposals

HRI’s announcement says that, excluding the votes Saba cast in favour of their own Requisitioned Resolutions (being 14.1 million votes, representing approximately 34.75% of the votes cast), only a further 59,221 Shares, representing just 0.15% of the votes cast, voted in favour of the Requisitioned Resolutions. HRI says “this is a damning indictment of Saba’s proposals by the Company’s non-Saba Shareholders”. 99.78% of all votes cast by non-Saba shareholders were voted against Saba’s resolutions and in favour of the existing Board.

HRI : Herald wins Saba fight, shareholders reject attempt to seize control