Feb 1, 4:22 PM ET
Eaton Vance Tax-Managed Buy-Write Income Fund exempts control share purchases
On January 26, 2023, the Fund's Board of Trustees voted to exempt, on a going forward basis, all prior and new purchases of Fund shares that might otherwise be deemed control share acquisitions under the Fund's By-Laws, until further notice. The move followed a January 23, 2023 Massachusetts Superior Court ruling that the control share by-law violates Section 18(i) of the Investment Company Act of 1940, while the litigation continues. For shareholders, the exemption means shares acquired in such purchases are not subject to the by-law's voting restrictions unless the Board changes its decision.
- Board vote dated January 26, 2023 exempts prior and new control share acquisitions of Fund shares until further notice
- Massachusetts Superior Court ruling on January 23, 2023 held the control share by-law violates Section 18(i) of the Investment Company Act of 1940 and granted summary judgment on Saba Capital Master Fund's rescission claim
- Court also granted the Funds' and Board's motion on Saba's fiduciary duty claim; the litigation is ongoing and appeal decisions will follow the remaining issues
- Exhibit 99.1 announcement dated January 26, 2023 covers multiple Eaton Vance closed-end funds, including the Fund (NYSE: ETB)