PHILADELPHIA, Sept. 16, 2015 /PRNewswire/ -- Aberdeen Australia Equity Fund, Inc. (NYSE: IAF) (the "Fund"), a closed-end fund, today announced that the Fund's Board of Directors has approved enhancements to its corporate governance to align with best practices for Board election and ongoing service. Specifically, the Board adopted certain corporate governance guidelines for the Fund to become effective on September 30, 2015. The governance guidelines include: (i) a resignation policy, which generally provides that, notwithstanding the plurality director election voting standard provided for in the Fund's By-laws, a director, in an uncontested election, who does not receive a majority of votes "For" his or her election at a meeting of shareholders shall be deemed to have tendered his or her resignation, subject to a Board's acceptance or rejection of such resignation, which Board determination will be disclosed publicly to Fund shareholders; (ii) a policy requiring that after an Independent Director has served on the Board for three full terms of three years following the later of (x) engagement of the existing investment manager of the Fund or (y) the director's election to the Board, the director will be put forth for consideration by shareholders annually; and (iii) a policy whereby newly appointed directors will be submitted for consideration at the next regular shareholder meeting. The failure to obtain a majority of votes cast will trigger the resignation policy described above. With respect to clause (ii) above, Independent Directors currently serving on the Board will be submitted to stockholders for consideration of continuation as a director on an annual basis beginning at the first annual meeting following the end of each such Board member's three-year term in office after the end of such director's current term.
Closed-end funds are traded on the secondary market through one of the stock exchanges. The Fund's investment return and principal value will fluctuate so that an investor's shares may be worth more or less than the original cost. Shares of closed-end funds may trade above (a premium) or below (a discount) the net asset value (NAV) of the Fund. There is no assurance that the Fund will achieve its investment objective. Past performance does not guarantee future results.
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aberdeenIAF.com
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SOURCE Aberdeen Australia Equity Fund, Inc.
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