Bill > H1112

This bill modifies Massachusetts law regarding control share acquisitions, focusing specifically on listed closed-end funds (investment companies listed on national exchanges). The bill redefines "control share acquisition" by establishing new thresholds for voting power, including specific ranges for listed closed-end funds (such as 10-15% or 15-20% voting power) and broader ranges for other public corporations. The legislation introduces new definitions, including "1940 Act" (referring to the Investment Company Act of 1940) and "listed closed-end fund", and creates special provisions for these investment funds. Notably, the bill changes how voting rights are determined for shares acquired in a control share acquisition for listed closed-end funds, allowing fund directors (particularly those who are not "interested persons") to approve, ratify, or exempt certain acquisitions based on what they determine to be in the fund's best interest. The bill also modifies several sections of existing law to create exceptions for listed closed-end funds, effectively providing them more flexibility in handling control share acquisitions compared to other types of public corporations. These changes are set to take effect on July 31, 2026, for listed closed-end funds.

Business and Industry

https://malegislature.gov/Bills/194/H1112