Undermining ASA: Saba’s Conduct
Serious governance and regulatory concerns
Over the past two years, Saba and its hand-picked directors have taken actions that interfered with shareholder rights, pressured participants in ASA’s governance process, and imposed substantial costs on shareholders.
Shareholders were denied a meaningful opportunity to influence ASA’s future before key outcomes were effectively set in motion. Unless regulators intervene promptly, shareholders now risk losing ASA’s investment strategy, facing significant tax consequences, and being locked into a fundamentally different structure they were never given a fair opportunity to evaluate or reject.
These actions raise serious governance and regulatory concerns that warrant immediate scrutiny.
Intimidation and Coercion
Potential director candidates, service providers, and shareholders faced litigation threats, personal liability concerns, and retaliation risk. Multiple directors and key service providers ultimately resigned under duress, contributing to a governance process in which shareholders were denied a meaningful opportunity to influence ASA’s future.
Suppressed Shareholder Rights
Despite substantial shareholder support, initiatives that would have allowed shareholders to influence ASA’s direction were undermined.
Compromised Director Independence
Key governance decisions were made under conditions that raise serious questions about whether independent director judgment was protected, whether alternatives were meaningfully reviewed, and whether the process was shaped toward Saba’s preferred outcome.
Substantial Shareholder Costs
Extraordinary expenses exceeded $9 million, while shareholders now face higher ongoing costs, potential tax consequences, and reduced liquidity options as a result of Saba’s actions
If you are a shareholder, regulators should hear directly from you. File a complaint with the SEC to help ensure these actions receive immediate scrutiny before further harm occurs.
For completeness, see also transgressions of Saba raised during the 2025 proxy campaign at saveasa.com/saba.
Saba is proposing to the Board that it hand-picked to repurpose ASA into a Saba-managed BDC-style investment vehicle with management fees and profit-sharing arrangements. File a complaint with the SEC to help protect ASA shareholders. As of this writing, ASA’s Board has not announced how it will proceed. The advisory agreement expires June 30. Shareholders need to act now.
Axel Merk owns over 300,000 shares of ASA Gold and Precious Metals Limited. He also serves as President and Chief Investment Officer of Merk Investments LLC, the Fund's investment adviser. He recently resigned as Chief Operating Officer of ASA.
The information presented on this website reflects the views and opinions of Axel Merk and is provided solely for educational and informational purposes. It does not constitute investment, legal, financial, or tax advice. You should consult your own advisors for guidance specific to your circumstances.
The plans of Saba and the Board are based on publicly disclosed information only and are therefore accordingly qualified in their entirety and subject to change.
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