DEFR14A: BlackRock Health Sciences Term Trust Amends Proxy Statement Following Court Decision

BlackRock Health Sciences Term Trust amends its proxy statement to reflect a court decision impacting the applicability of the Maryland Control Share Acquisition Act to the Trust's upcoming shareholder meetings.

Summary

• BlackRock Health Sciences Term Trust filed an amendment to its proxy statement on May 20, 2024, related to the annual meeting of shareholders to be held on June 25, 2024.
• The amendment addresses a U.S. District Court decision from December 5, 2023, regarding the applicability of the Maryland Control Share Acquisition Act to certain BlackRock-sponsored funds.
• The court ruled that the funds' elections to be subject to the Maryland Control Share Acquisition Act violate Section 18(i) of the 1940 Act.
• BlackRock has appealed the district court's decision to the U.S. Court of Appeals for the Second Circuit.
• As a result of the district court's decision, the Maryland Control Share Acquisition Act will not apply to the Trust's 2024 and 2025 annual shareholder meetings.
• The amendment clarifies that it should be read in conjunction with the original proxy statement filed on April 25, 2024, and that any conflicting information in the amendment takes precedence.

Sentiment

Score: 5

Explanation: The document is a factual update regarding a legal matter and its impact on the proxy statement. The sentiment is neutral as it primarily conveys information without expressing a strong positive or negative outlook.

Risks

• The ongoing appeal to the U.S. Court of Appeals for the Second Circuit introduces uncertainty regarding the final applicability of the Maryland Control Share Acquisition Act.

Future Outlook

The applicability of the Maryland Control Share Acquisition Act to future shareholder meetings beyond 2025 will depend on the outcome of the appeal to the U.S. Court of Appeals for the Second Circuit.

Industry Context

The court decision impacts multiple BlackRock-sponsored closed-end funds domiciled in Maryland, highlighting potential legal challenges related to state control share acquisition acts and their interaction with the 1940 Act.

Legal Proceedings

• The U.S. District Court for the Southern District of New York granted judgment in favor of a plaintiff's claim for rescission of resolutions related to the Maryland Control Share Acquisition Act.
• The funds have appealed the district court's decision to the U.S. Court of Appeals for the Second Circuit.

Stakeholder Impact

• Shareholders should be aware that the Maryland Control Share Acquisition Act will not apply to the Trust's 2024 and 2025 annual shareholder meetings.
• The outcome of the appeal could affect the applicability of the Maryland Control Share Acquisition Act to future shareholder meetings.

Next Steps

• Shareholders should read the amended proxy statement in conjunction with the original proxy statement.
• The U.S. Court of Appeals for the Second Circuit will review the district court's decision regarding the Maryland Control Share Acquisition Act.

Key Dates

Keywords

proxy statement, BlackRock Health Sciences Term Trust, Maryland Control Share Acquisition Act, shareholder meeting, closed-end funds, court decision, appeal