Business Context and Reporting Period
This Form 8-K was filed by Eaton Vance Floating-Rate Income Trust (NYSE: EFT) on August 13, 2020. The filing reports a corporate governance action taken by the Board of Trustees on the same date.
Financial Metrics
The filing text does not provide a clear value for revenue, profit, cash flow, margins, debt, or liquidity. This report is a current report regarding corporate by-laws and does not contain financial performance data.
Material Changes
The primary material change reported is the amendment and restatement of the Fund's By-Laws, effective August 13, 2020. Key changes include:
- Adoption of Control Share Provisions designed to limit the risk of undue influence by opportunistic hedge funds or activist investors.
- Definition of a "Control Share Acquisition" as obtaining beneficial ownership that grants voting power in the election of Trustees within specific ranges (10% to 20%, 20% to 33.3%, 33.3% to majority, or majority or more).
- Restriction of voting rights for shares acquired in a Control Share Acquisition unless approved by "non-interested" shareholders.
- Exclusion of share acquisitions made prior to August 13, 2020, from the definition of a Control Share Acquisition, though they count toward threshold calculations for future acquisitions.
Guidance, Outlook, and Risks
The filing does not contain financial guidance, outlook, or management commentary on market conditions. The stated purpose of the new provisions is to protect the interests of the Fund and its shareholders. Investors are directed to the full Amended and Restated By-Laws (attached as an exhibit) for detailed procedural requirements and exceptions.
Key Facts for Investor Verification
- Verify the specific thresholds and procedural requirements for requesting a shareholder vote on voting rights authorization in the attached Amended and Restated By-Laws.
- Confirm how the Control Share Provisions apply to existing holdings versus new acquisitions made after August 13, 2020.
- Review the definition of "non-interested" shareholders to understand who is eligible to vote on the authorization of voting rights for acquiring shareholders.