The Court of Appeals has confirmed that the use of a control share bylaw by a Massachusetts trust violates the Investment Company Act of 1940.

After being sued, the board of trustees of the First Trust closed-end funds announced that they have “determined to rescind the control share provisions.”

Special Opportunities Fund, Inc. has announced a standstill with Delaware Enhanced Global Dividend and Income Fund, which will provide, among other things, a tender offer to purchase up to 30% of common shares contingent on approval of a proposed reorganization.

Morris Kandinov LLP is representing Bulldog Investors in connection with an amicus curiae brief in a case involving the voting rights of investors in closed-end funds.

The fund industry recently lost its second case on the use of control share bylaws, which seek to limit the ability of large shareholders to vote their shares after their holdings exceed a defined threshold.

A Massachusetts Superior Court decision in March 2021 reaffirms the significant contractual, state law, and federal law protections over fund shareholder voting rights.