DEFA14A: BlackRock Science and Technology Term Trust Responds to Dissident Investor Claims

BlackRock addresses claims regarding proxy voting and shareholder access, defending its actions and commitment to shareholder value.

Summary

• BlackRock Advisors, LLC issued statements addressing concerns raised by a dissident investor regarding BlackRock Science and Technology Term Trust.
• BlackRock refutes the claim that non-votes are counted as votes in favor of BlackRock nominees.
• The company emphasizes that significant changes to the Board require affirmative votes from a majority of shareholders.
• BlackRock welcomes constructive engagement with shareholders who aim to enhance long-term value.
• BlackRock highlights its history of taking actions, such as discount management programs and mergers, to improve fund returns.
• BlackRock asserts that it has always complied with applicable laws regarding shareholder access to information and denies blocking Sabas' access to shareholders.

Sentiment

Score: 6

Explanation: The sentiment is neutral to slightly positive as BlackRock defends its actions and emphasizes its commitment to shareholder value, but the presence of a dissident investor introduces some uncertainty.

Positives

• BlackRock welcomes constructive engagement with shareholders.
• The company has a history of taking actions to improve fund returns.
• BlackRock asserts compliance with all applicable laws regarding shareholder access to information.

Risks

• The presence of a dissident investor suggests potential disagreements regarding the fund's management or strategy.
• Negative publicity surrounding proxy voting and shareholder access could damage BlackRock's reputation.

Management Comments

• It is very misleading to say that non-votes count as votes for BlackRock nominees.
• For any dissident investor to propose significant changes to the Board, these funds simply require that most shareholders vote affirmatively in favor.
• BlackRocks closed-end funds welcome constructive engagement with thoughtful shareholders who act in good faith with the shared goal of enhancing long-term value for all.
• BlackRock has taken numerous actions over the years, including discount management programs and mergers, to improve returns of our closed-end funds where we felt these actions were in the best interest of shareholders.
• BlackRock has always acted in accordance with all applicable laws with respect to providing access to our shareholders personal information.
• We have never blocked Sabas access to shareholders.

Industry Context

The document reflects increasing shareholder activism and scrutiny of corporate governance practices within the investment management industry.

Stakeholder Impact

• Shareholders are directly impacted by the proxy voting process and the outcome of any potential board changes.
• The fund's performance and management decisions affect shareholder returns.

Keywords

BlackRock, proxy statement, shareholders, votes, dissident investor, closed-end funds, governance