This excerpt taken from the EFA DEF 14A filed May 24, 2005.
What are shareholders being asked to approve?
The 1940 Act requires each Fund to adopt fundamental investment restrictions with respect to several specific types of activities, including a Funds ability to issue senior securities, make loans to other persons, and concentrate its investments in any particular industry or group of industries. The Board is proposing that shareholders approve revisions to certain of the Funds fundamental investment restrictions, as described more fully in this Proposal, in an effort to standardize the Funds investment restrictions and provide the Funds with the maximum investment flexibility permitted under current law.
Shareholders are being asked to approve such changes because the 1940 Act requires changes in fundamental investment restrictions to be approved by a majority of the Funds outstanding voting securities, as defined in the 1940 Act.