The Progressive


A project of Common Dreams

For Immediate Release

Peter Bjork 202.408.5565

CREW Files SEC FOIA for Documents on State-Law Loophole in Shareholders' Voting Rights


Today, Citizens for Responsibility and Ethics in Washington (CREW)
sent a Freedom of Information Act (FOIA) request to the Securities and
Exchange Commission (SEC) seeking documents related to the agency's
enforcement of the Investment Company Act of 1940 with respect to
closed-end funds. Notwithstanding provisions of that Act
that require all shares of stocks in closed-end funds to have equal
voting rights, state laws, including in Maryland, restrict shareholders
who own a certain percentage of stocks from voting control shares.
These state laws have allowed boards of directors to retain control over
funds even when they are not acting in the best interests of the

to read CREW's FOIA request to the SEC.

Citizens for Responsibility and Ethics in Washington (CREW) is a nonprofit 501(c)(3) organization dedicated to promoting ethics and accountability in government and public life by targeting government officials -- regardless of party affiliation -- who sacrifice the common good to special interests. CREW advances its mission using a combination of research, litigation and media outreach.