Adams Funds Announce Governance Updates

Rhea-AI Summary

Adams Diversified Equity Fund (NYSE: ADX) and Adams Natural Resources Fund (NYSE: PEO) announced several governance updates approved by their Boards of Directors. These include the election of a classified board structure and adoption of specific bylaws amendments. The classified board structure will have three director classes with three-year terms each, as per Maryland Corporations Code Section 3-803. These changes aim to enhance the stability of fund oversight and operations, serving the long-term interests of shareholders. The governance updates were made after a thorough review to safeguard the best interests of the funds and their shareholders.

Positive

• Adoption of a classified board structure enhances stability in fund oversight.
• Governance changes aim to serve long-term shareholder interests.
• Extensive review and evaluation were conducted to ensure the best possible governance enhancements.
• New bylaws amendments ensure qualified directors, potentially improving fund management.

Negative

• No immediate financial benefits or performance improvements were mentioned.
• Governance changes might be viewed as a defensive measure rather than a proactive enhancement.
• Potential dilution of shareholder influence due to extended director terms.

BALTIMORE, June 03, 2024 (GLOBE NEWSWIRE) -- Adams Diversified Equity Fund, Inc. (NYSE: ADX), and Adams Natural Resources Fund, Inc. (NYSE: PEO) announced today that the Board of Directors of each Fund has unanimously approved several governance updates: election of a classified board structure and adoption of certain bylaws amendments.

The Funds have each elected to be subject to Maryland Corporations Code Section 3-803, which provides for a classified board structure consisting of three director classes of three years each. These elections strengthen the stability of Fund oversight and operations, furthering each Fund’s objectives and serving the long-term interests of shareholders and the Funds. The Funds also have approved bylaws amendments, including those related to director qualifications. The Funds’ Boards of Directors approved these governance changes following an extensive review and evaluation of possible alternatives and enhancements designed to safeguard and advance the best interests of the Funds and their shareholders and to position the Funds to continue to seek to meet their investment objectives.

About Adams Funds

Since 1929, Adams Funds has consistently helped generations of investors reach their investment goals. Adams Funds is comprised of two closed-end funds, Adams Diversified Equity Fund, Inc. (NYSE: ADX) and Adams Natural Resources Fund, Inc. (NYSE: PEO). The Funds are actively managed by an experienced team with a disciplined approach and have paid dividends for more than 85 years across many market cycles. The Funds are committed to paying an annual distribution rate of 8% of NAV or more, providing reliable distributions to long-term investors. Shares can be purchased through our transfer agent or through a broker. For more information about Adams Funds, please visit: adamsfunds.com.

For further information please contact: adamsfunds.com/about/contact or 800.638.2479

FAQ

What governance updates did Adams Diversified Equity Fund (NYSE: ADX) announce in June 2024?

Adams Diversified Equity Fund announced the election of a classified board structure and adoption of certain bylaws amendments to enhance fund stability and shareholder interests.

What is a classified board structure as adopted by Adams Diversified Equity Fund (NYSE: ADX)?

A classified board structure divides the board into three classes, each serving staggered three-year terms, as per Maryland Corporations Code Section 3-803.

Why did Adams Diversified Equity Fund (NYSE: ADX) adopt governance updates?

The governance updates were adopted to enhance the stability of fund oversight and operations, serving the long-term interests of shareholders.

When were the governance updates for Adams Diversified Equity Fund (NYSE: ADX) announced?

The governance updates were announced on June 03, 2024.