SOURCE: Dividend and Income Fund
NEW YORK, NY--(Marketwired - May 1, 2014) - Dividend and Income Fund (NYSE: DNI) (NAV: XDNIX) (the "Fund") announced today that at the Fund's Annual Meeting of Shareholders, shareholders (1) re-elected James E. Hunt to the Board of Trustees of the Fund as a Class III Trustee to serve until 2017 or until his successor is elected and qualifies; (2) approved amendments to the Fund's Amended and Restated Agreement and Declaration of Trust ("Declaration") regarding limitations on the ability of persons to own more than 4.99% of the Fund's outstanding shares without the Trustees' prior approval; and (3) approved certain changes to the Fund's fundamental investment objectives, policies, and restrictions, including (a) changing the Fund from diversified to non-diversified; (b) removing the fundamental policy relating to investments in companies for the purpose of exercising control or management; (c) revising the fundamental policy relating to real estate; (d) removing the fundamental policy relating to short sales of securities; (e) revising the fundamental policy relating to commodities; (f) revising the fundamental policy relating to lending; (g) revising the fundamental policy relating to underwriting; and (h) revising the fundamental policy relating to industry concentration.
4.99% Share Ownership Limitations
Pursuant to the amendments approved by shareholders, the Declaration limits the ability of persons to own more than 4.99% of the Fund's outstanding shares without the Trustees' prior approval ("4.99% Share Limitations"). The Declaration provides that any purchase or acquisition of Fund shares attempted to be made in violation of the 4.99% Share Limitations will be null and void ab initio to the fullest extent permitted by law and contains detailed terms that seek to achieve that result. It also provides that any person who knowingly violates the 4.99% Share Limitations, or any persons in the same control group with such a person, shall be liable to the Fund for, and shall indemnify and hold it harmless against, any and all damages suffered as a result of the violation, including damages resulting from a reduction in or elimination of the Fund's ability to use its capital loss carryovers and attorneys' and auditors' fees incurred in connection with such violation. A copy of the Declaration and a more detailed description of the 4.99% Share Limitations are available on the Fund's web site at www.dividendandincomefund.com.
About the Fund
The Fund is a closed end fund with the primary investment objective of providing its shareholders a high level of income. Capital appreciation is a secondary objective. The Fund seeks to achieve its objectives by investing, under normal circumstances, at least 50% of its total assets in income generating equity securities.
Bexil Advisers LLC is the Fund's investment manager. Bexil Advisers LLC is a wholly owned subsidiary of Bexil Corporation (BXLC), a holding company. To learn more about Bexil Corporation, including Rule 15c2-11 information, please visit www.bexil.com. For Fund stockholder related questions, please call 212-785-0900. Certain affiliates of Bexil are engaged in stock market and gold investing through investment management of equity and gold mutual funds and closed end funds.
Safe Harbor Note
This release contains certain "forward looking statements" made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of the Fund, which may cause the Fund's actual results to be materially different from those expressed or implied by such statements. The forward looking statements made herein are only made as of the date of this announcement, and the Fund undertakes no obligation to publicly update such forward looking statements to reflect subsequent events or circumstances.
This communication shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state, or an exemption therefrom.