Templeton Global Income Fund Announces Legal Action to Prevent Certification of the Results of the Fund’s Annual Meeting of Shareholders

Rhea-AI Summary

The Templeton Global Income Fund (NYSE: GIM) announced the filing of a Stipulation and Proposed Order with the U.S. District Court for the Southern District of New York to resolve their request for a temporary restraining order. This concerns the certification of results from the Fund's Annual Meeting held on June 6, 2022. The agreement prevents certification of the meeting results and the seating of Saba Capital Management's nominees until the Court rules on the Fund's request for injunctive relief. The Fund alleges that Saba made undisclosed arrangements to pay a premium to a large institutional shareholder before the meeting.

Positive

• Court granted a status quo agreement to maintain the current Board's management of the Fund.
• Resolution aims to ensure transparency in shareholder voting process.

Negative

• Saba allegedly failed to disclose deals with institutional shareholders that could impact voting.
• Claims of breach of federal securities laws regarding required disclosures.

FORT LAUDERDALE, Fla.--(BUSINESS WIRE)-- Templeton Global Income Fund [NYSE: GIM] (the “Fund”), today announced that the Fund and Saba Capital Management, L.P. (“Saba”) and related individuals and parties (together, the “Parties”) have filed a Stipulation and Proposed Order with the United States District Court in the Southern District of New York (the “Court”), which has been granted by the Court, for entry of a status quo agreement and schedule for expedited proceedings, thereby resolving the Fund’s request for a temporary restraining order related to the certification of the results of the Fund’s Annual Meeting of Shareholders held on June 6, 2022 (the “Annual Meeting”). The Parties agreed that the Annual Meeting results will not be certified and Saba’s 2022 Trustee nominees will not be seated before one business day after the Court has issued a ruling on the Fund’s request for injunctive relief. The Parties also agreed that the Fund and its current Board of Trustees shall continue to manage the Fund in the ordinary course of business consistent with their fiduciary duties and as required by law.

The Fund’s complaint alleges that, over the weekend prior to the Fund’s Annual Meeting, Saba Capital Management, L.P. and related individuals and parties (together, “Saba”) struck—but kept secret—a deal to pay at least one large institutional shareholder a significant premium to the market price of the Fund’s shares, with an additional premium if Saba’s nominees prevailed at the Annual Meeting. The complaint asserts that federal securities laws expressly require that any such arrangements be fully disclosed with sufficient time to be absorbed by shareholders whose votes may be impacted. The complaint alleges that Saba failed to make those required disclosures, keeping its deal secret until after the Annual Meeting had concluded. The complaint seeks an order directing that a new vote be held after Fund shareholders have had the benefit of true and complete information about Saba’s conduct and an opportunity to cast informed votes.

For further information on Templeton Global Income Fund, please visit our web site at: www.franklintempleton.com

Franklin Resources, Inc. [NYSE:BEN] is a global investment management organization with subsidiaries operating as Franklin Templeton and serving clients in over 155 countries. Franklin Templeton’s mission is to help clients achieve better outcomes through investment management expertise, wealth management and technology solutions. Through its specialist investment managers, the company offers boutique specialization on a global scale, bringing extensive capabilities in equity, fixed income, multi-asset solutions and alternatives. With offices in more than 30 countries and approximately 1,300 investment professionals, the California-based company has 75 years of investment experience and approximately $1.45 trillion in assets under management as of May 31, 2022. For more information, please visit franklintempleton.com.

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Media Contact

Prosek Partners

Brian Schaffer

bschaffer@prosek.com



For more information, please contact Franklin Templeton at 1-800-342-5236.

Source: Templeton Global Income Fund

FAQ

What was the outcome of the Templeton Global Income Fund's request for a temporary restraining order?

The U.S. District Court granted a status quo agreement, preventing the certification of the Annual Meeting results.

What does the complaint against Saba Capital Management allege?

It alleges that Saba made undisclosed financial arrangements with a large shareholder prior to the Annual Meeting.

What are the implications of Saba's alleged undisclosed arrangements for GIM shareholders?

The secrecy around these arrangements may have impacted shareholder voting and the integrity of the election process.

When did the Templeton Global Income Fund hold its Annual Meeting?

The Annual Meeting was held on June 6, 2022.

What is the ticker symbol for Templeton Global Income Fund?

The ticker symbol for Templeton Global Income Fund is GIM.