5 Sep 2025
📈Proposed Rule Change for Closed-End Companies on Annual Meetings
Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Order Instituting Proceedings To Determine Whether To Approve or Disapprove a Proposed Rule Change To Exempt Closed-End Management Investment Companies Registered Under the Investment Company Act of 1940 That Are Listed as of or After May 20, 2025 From the Annual Meeting of Shareholders Requirement Set Forth in Exchange Rule 14.10(f)
Summary
The SEC is evaluating a proposed rule change by Cboe BZX Exchange to exempt closed-end management investment companies from the requirement to hold annual shareholder meetings. This proposal aims to reduce operational costs and facilitate capital formation, sparking discussions about investor rights and governance practices in the sector.
Agencies
- Securities and Exchange Commission
Business Impact
$$$ - High
The proposed rule change would exempt closed-end management investment companies from annual shareholder meetings, significantly impacting their corporate governance and potentially altering investor rights. This shift could encourage more CEF listings, influence market dynamics, and reduce operational costs for these companies. It raises compliance and investor protection considerations.