DEFA14A: Flaherty & Crumrine Funds' Annual Meeting Adjourned Again Due to Low Shareholder Turnout

The Flaherty & Crumrine Dynamic Preferred and Income Fund Incorporated and Flaherty & Crumrine Preferred and Income Fund Incorporated annual meeting has been adjourned to May 12th, 2025, due to insufficient shareholder participation, urging shareholders to vote on director elections and a new investment advisory agreement.

Summary

• The Joint Annual Meeting of Shareholders for Flaherty & Crumrine Dynamic Preferred and Income Fund Incorporated (DFP) and Flaherty & Crumrine Preferred and Income Fund Incorporated (PFD) has been adjourned again to May 12th, 2025.
• The adjournment is due to a lack of sufficient shareholder participation.
• Shareholders are requested to vote on two proposals: electing directors and approving a new investment advisory agreement with Flaherty & Crumrine Incorporated.
• The new advisory agreement is required due to a deemed change of control at the Adviser level, which will terminate the existing agreements.
• The terms of the new advisory agreement, including advisory fees, investment objectives, principal investment strategies, and day-to-day management, remain identical to the current agreement.
• The Board of Directors unanimously recommends voting in favor of the proposals.
• Shareholders are urged to submit their votes using the provided URL and control number.
• Okapi Partners LLC is available for assistance with voting at (877) 279-2311 or Flaherty@okapipartners.com.

Sentiment

Score: 6

Explanation: The sentiment is neutral. While the adjournment due to low turnout is a concern, the continuity of the advisory agreement terms and the Board's recommendation are positive.

Positives

• The terms of the new advisory agreement are identical to the current agreement, ensuring continuity.
• There are no changes to advisory fees, investment objectives, or day-to-day management.
• The Board of Directors unanimously recommends voting for the proposals.

Negatives

• The Annual Meeting has been adjourned again due to a lack of shareholder participation, indicating potential shareholder apathy or difficulty in reaching shareholders.

Risks

• Continued low shareholder participation could delay or complicate the approval of important proposals.
• Failure to approve the new investment advisory agreement could disrupt the management of the Funds.

Future Outlook

The Funds need to secure shareholder approval for the new investment advisory agreement to ensure continued management by Flaherty & Crumrine.

Management Comments

• The Board of Directors unanimously recommends that shareholders vote FOR the proposals.

Industry Context

Investment companies routinely seek shareholder approval for advisory agreements, especially following a change of control. Low shareholder turnout is a common challenge in closed-end funds, requiring additional solicitation efforts.

Stakeholder Impact

• Shareholders are directly impacted by the proposals being voted on.
• The Funds' management and operations could be affected if the new advisory agreement is not approved.

Next Steps

• Shareholders need to submit their votes before the adjourned Annual Meeting on May 12th, 2025.
• The Funds need to achieve sufficient shareholder participation to approve the proposals.

Key Dates

Keywords

Shareholder Meeting, Proxy Vote, Investment Advisory Agreement, Flaherty & Crumrine, Directors, Adjournment