ASA Gold and Precious Metals Limited Faces Governance Issues

ASA Gold and Precious Metals Limited (NYSE: ASA) recently disclosed in an 8-K SEC filing dated November 8, 2024, that the company’s Board of Directors has been embroiled in governance disputes. The Bermuda-based company detailed that its Board, consisting of four members, saw two directors elected in April 2024 (referred to as the “New Directors”) upon nomination by Fund shareholders, while two directors were reelected in the same month (referred to as the “Legacy Directors”) upon the nomination of the previously constituted Fund Board.

According to the filing, each member of the Board separately sought legal counsel for fund governance matters and requested reimbursement for their legal expenses. This move was made under the Fund’s bye-laws, driven by certain governance issues that have divided the Board.

The company also provided excerpts from three letters exchanged in October and November 2024 between counsels representing the New Directors and the Legacy Directors. These letters shed light on differing perspectives regarding the formation and legitimacy of certain committees within the company and potential actions surrounding the company’s investment manager, Merk Investments LLC, as well as the results of the Board election and the shareholders’ stance.

The information shared in this disclosure falls under Item 7.01 of Regulation FD Disclosure. The company clarified that the contents of this corporate update are provided for information purposes and are not considered filed under the Exchange Act.

In terms of financial disclosures and exhibits under Item 9.01, ASA Gold and Precious Metals Limited included three letters as exhibits, detailing the ongoing communications and potential disputes within the Board.

It should be noted that the information holds significance for ASA Gold and Precious Metals Limited shareholders and could potentially impact the company’s governance and strategic decisions moving forward.

Investors and stakeholders will likely keep a close watch on the upcoming developments, including the looming Board meeting scheduled for November 12, 2024, where further discussions on governance issues are anticipated.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read ASA Gold and Precious Metals’s 8K filing here.

ASA Gold and Precious Metals Company Profile

ASA Gold and Precious Metals Limited is a publicly owned investment manager. The firm invests in the public equity markets across the globe. It primarily invests in stocks of companies engaged in the exploration, mining or processing of gold, silver, platinum, diamonds, or other precious minerals. It also invests in exchange traded funds.