[10733]
February 17, 1999
TO: CLOSED-END INVESTMENT COMPANY COMMITTEE No. 7-99
RE: MARYLAND LEGISLATION REGARDING CLOSED-END FUNDS
______________________________________________________________________________
On February 12, a bill was introduced in the Maryland legislature (attached) that, among other
things, would allow a closed-end fund, but not its shareholders, to submit a proposal to the fund’s
shareholders to take certain actions even if the fund’s board of directors fails to recommend the
proposal or to declare it advisable or recommends that the fund’s shareholders reject it. These actions
would include amending the fund’s charter to convert to an open-end fund, to dissolve, to require the
fund to make one or more tender offers for its shares, or “to take other action intended to eliminate any
trading discount to net asset value” of the fund’s shares.
Please provide me with your comments by phone at (202) 371-5408, by fax at
(202) 326-5841, or by e-mail at aburstein@ici.org.
Ari Burstein
Assistant Counsel
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