Continuation vote

Most listed companies don’t have a fixed lifespan – essentially they’re intended to carry on trading until they go bust or are taken over. Hence many successful companies have been around for decades or even longer: US utility Consolidated Edison has been listed on the New York Stock Exchange since 1824. However, listed investment companies – also known as investment trusts or closed-end funds – may be different.

These are companies whose business is to invest in stocks and other securities rather than carrying on a business. So it may be in shareholders’ best interests if these companies wind up once their investments mature, or if they are persistently underperforming the market.

To ensure this happens, an investment company’s articles of association often provide for the shareholders to vote on whether the company should continue to exist under certain circumstances. This is known as a continuation vote and is usually automatically triggered annually, or after a certain period of time (for example, five years after the fund was set up). If shareholders vote against continuation, the assets will be sold, cash returned to shareholders, and the company will be wound up.

66% off newsstand price

12 issues (and much more) for just £12

That’s right. We’ll give you 12 issues of MoneyWeek magazine, complete access to our exclusive web articles, our latest wealth building reports and videos as well as our subscriber-only email… for just £12.

That’s just £1 per week for Britain’s best-selling financial magazine.

Click here to take advantage of our offer

Britain is leaving the European Union. Donald Trump is reducing America’s role in global markets. Both will have profound consequences for you as an investor.

MoneyWeek analyses the critical issues facing British investors on a weekly basis. And, unlike other publications, we provide you with the solutions to help you turn a situation to your financial advantage.

Take up our offer today, and we’ll send you three of our most important investment reports:

All three of these reports are yours when you take up our 12 issues for £12 offer today.

MoneyWeek has been advising private British investors on what to do with their money since 2000. Our calls over that period have enabled our readers to both make and save a great deal of money – hence our position as the UK’s most-trusted investment publication.

Click here to subscribe for just £12