Feb 1, 4:23 PM ET
Eaton Vance Tax-Managed Buy-Write Opportunities Fund waives control share bylaw
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 from the control share by-law provisions. The move followed a January 23, 2023 Massachusetts Superior Court ruling in litigation brought by Saba Capital Master Fund, Ltd., which held that the Control Share By-Law violates Section 18(i) of the Investment Company Act of 1940, while the court sided with the Board on the fiduciary duty claim. For shareholders, the exemption means buyers of Fund shares that would otherwise trigger the by-law's voting restrictions can vote their shares, and the litigation remains ongoing.
- Board exemption voted on January 26, 2023, effective 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
- Court granted the Funds' and Board's motion on Saba's fiduciary duty claim; litigation is ongoing and appeal decisions are pending