Baillie Gifford US Growth AGM sees significant votes against board

(Alliance News) - Baillie Gifford US Growth Trust PLC on Thursday said all ordinary resolutions at its annual general meeting were passed, but several received significant opposition, while one special resolution failed.

At the meeting in Edinburgh, shareholders in the investor in US companies approved resolutions including the adoption of the annual report and accounts, the reappointment of Ernst & Young as auditor, and authority to repurchase shares.

However, the special resolution to disapply pre-emption rights was rejected, with 47.8% of votes cast against.

Votes were also close on a number of director re-elections. Chair Tom Burnet was re-elected with 51.3% support, while fellow board members Susan Inglis, Graham Paterson and Chris van der Kuyl each secured around 52% of votes in favour, with 48% against.

The remuneration policy passed narrowly with 52.6% support.

The company said the significant votes against were almost entirely attributable to a single shareholder. Excluding this, it noted the majority of other shareholders backed the resolutions.

Chair Burnet said: "Whilst we recognise [Saba Capital Management LP's] right to exercise their democratic vote, it is disappointing that Saba, without prior notice of their intention, should use their substantial holding to attempt to vote off the whole board of directors.

"Had they succeeded, without directors the company would have been in breach of the companies act, the UK listing rules and its own articles, which would have had significant consequences for all shareholders."

The company said it will again seek to engage with Saba Capital to understand its position, while reaffirming its commitment to act in the interests of shareholders as a whole.

It added that it will now consult with major shareholders under the AIC corporate governance code and report on next steps within six months.

Shares in Baillie Gifford US Growth were up 0.5% at 272.29 pence in London on Thursday afternoon.

By Eva Castanedo, Alliance News reporter

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Baillie Gifford US Growth Trust