Yes, you heard it right: De-staggering proposal is dangerous for some
On August 21, 2019, the secretary of Ivy High Income Opportunities Fund sent a letter to the fund’s shareholders. The letter requested shareholders to “defeat” a “dangerous proposal”. It was actually the choice of words that caught my attention.
So, what exactly is the dangerous proposal the letter referred to? It is the proposal submitted by Saba Capital to de-stagger the board.
Yes, as per the insiders, de-staggering the board is “dangerous”. The letter argued that a de-staggered board structure “empowers” the trustees to resist the unreasonable demands of shareholder activists. Wow.
Now, it is up to you to decide for whom it is dangerous.
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