Shareholders of the $27 million Matthew 25 Fund have voted down, by more than a five to one margin, a proxy proposal that would have required both inside and independent directors to invest at least $25,000 in the fund as a prerequisite to serving on the fund's board. (MFMN 10/2/00)
The proposal would have required the fund's directors to maintain the minimum investment for each of the 12 months preceding their election or re-election to the fund's board.
The proposal was designed to more closely align directors' interests with those of shareholders.
Although the fund's annual shareholder meeting is not until Oct. 12, Mark Mulholland, president and portfolio manager of the funds and owner of the fund's adviser, Matthew 25 Management Corp. of Jenkintown, Pa., said in a telephone interview last week that a majority of the fund's proxies have already been voted and that investors overwhelmingly voted against the ownership proposal.