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SIGNATURE HENRY G. VAN DER EB, JR.
TITLE CHAIRMAN
<TABLE> <S> <C>
<ARTICLE> 6
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> JUN-30-1998
<INVESTMENTS-AT-COST> 114,185,403
<INVESTMENTS-AT-VALUE> 121,095,613
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<SHARES-COMMON-STOCK> 9,435,472
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<OVERDISTRIBUTION-GAINS> 0
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<DIVIDEND-INCOME> 61,775
<INTEREST-INCOME> 3,648,290
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<EXPENSES-NET> 799,591
<NET-INVESTMENT-INCOME> 2,910,474
<REALIZED-GAINS-CURRENT> ( 6,834,656)
<APPREC-INCREASE-CURRENT> ( 6,241,088)
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</TABLE>
SUB-ITEM 77C
As described in the proxy statement of Mathers Fund, Inc.
dated March 16, 1998 relating to its Special Meeting of
Stockholders held April 20, 1998, to which reference is hereby
made, the Fund submitted to a vote of its stockholders, among other
things, a proposal to permit the Fund to effect short sales of
securities. This proposal was approved by stockholders by a vote
of 5,691,998 shares in favor of the proposal and 756,709 shares
against it.
ITEM 77Q
At a meeting of the Board of Directors of Mathers Fund, Inc.
held on February 9, 1998, the following resolutions were
unanimously adopted:
RESOLVED, that, subject to the approval of the stockholders
of the corporation, Article IV, Section 7(c) of the corporation's
By-laws and the fundamental policy of the corporation each of
which currently prohibits the sale of securities short (except
for the purchase or sale of stock index futures contracts and
options on such contracts) be, and each hereby is, amended, in
the case of Section 7(c), by deleting the entirety of Section
7(c) (i.e., the phrase "(c) effect a short sale of any security
(except that the corporation may purchase and sell stock index
futures contracts and options on such contracts)"), and in the
case of such fundamental policy, by deleting the phrase "sell
securities short (except that the Fund may purchase and sell
stock index futures contracts and options on such contracts)".
FURTHER RESOLVED, that, subject to the approval of the
stockholders of the corporation, Article IV, Section 7(a) of the
corporation's By-laws and the fundamental policy of the
corporation each of which currently prohibits the purchase of
securities on margin (except for the making of margin payments in
connection with the purchase or sale of stock index futures
contracts and options on such contracts) be, and each hereby is,
amended, in the case of Section 7(a), to read "(a) purchase any
security on margin (except that the corporation may make margin
payments in connection with transactions in stock index futures
contracts and options on such contracts and in connection with
short sales of securities), except such short-term credits as are
necessary for the clearance of transactions", and in the case of
such fundamental policy, to read: "purchase securities on margin
(except that the Fund may make margin payments in connection with
transactions in stock index futures contracts and options on such
contracts and in connection with short sales of securities)".
FURTHER RESOLVED, that, subject to the approval of the
stockholders of the corporation, the fundamental policy of the
corporation which currently prohibits borrowing money, issuing
senior securities or the pledge of any of the corporation's
assets (collateral arrangements with respect to margin for stock
index futures contracts and options on such contracts not being
considered a pledge of assets for this purpose) be, and hereby
is, amended to read: "borrow money or issue senior securities,
except for temporary bank borrowings (not in excess of 5% of the
value of its assets) for emergency or extraordinary purposes, or
pledge any of its assets (collateral arrangements with respect to
margin for stock index futures contracts and options on such
contracts and with respect to short sales of securities not being
considered a pledge of assets for this purpose), except to secure
such borrowings and only to an extent not greater than 10% of the
value of the Fund's net assets".
FURTHER RESOLVED, that, subject to the approval of the
stockholders of the corporation of the preceding resolutions, (i)
the corporation's primary investment objective of "capital
appreciation over the long term principally through investment in
common stocks" be, and hereby is, amended and restated to be
"capital appreciation over the long term"; and the word "primary"
be, and hereby is, deleted in the designation of such phrase as
the corporation's investment objective, and (ii) the statement in
the corporation's Prospectus that "[c]urrent income is a
secondary consideration in the selection of equity investments"
shall be deleted and shall not be considered a secondary
investment objective of the corporation.
FURTHER RESOLVED, that, subject to the approval by the
stockholders of the corporation of the second, third and fourth
preceding resolutions, the following be, and hereby is, adopted
as a non-fundamental policy of the corporation:
"The corporation will not sell any
securities short if immediately thereafter
the market value of all securities sold short
by the Fund would exceed 30% of the value of
the Fund's net assets, and the Fund will not
sell securities of any single issuer short if
immediately thereafter the market value of
the securities of that issuer that have been
sold short by the Fund would exceed 3% of the
value of the Fund's net assets or if the
securities sold short would constitute more
than 2% of any one class of the issuer's
outstanding securities."
FURTHER RESOLVED, that subject to the election of Messrs.
Hedrich, Kohnen and Vance and Ms. Morrissy as directors of the
corporation and effective as of the time of such election, the
first sentence of Article II, Section 1 of the By-laws of the
corporation be, and it hereby is, amended to read as follows:
"The number of directors of the
corporation shall be nine."
ITEM 77Q
The following Action of Directors by Unanimous Consent was
adopted on February 27, 1998:
RESOLVED, that the sixth sentence of Article I, Section
7, of the By-laws of the corporation be, and it hereby
is, amended to read as follows:
"A plurality of the votes cast at a meeting of
stockholders, duly called and at which a
quorum is present, shall be sufficient to
elect directors and a majority of the votes
cast at a meeting of stockholders, duly called
and at which a quorum is present, shall be
sufficient to take or authorize any other
action which may properly come before the
meeting, unless a greater number is required
by the statute or by the charter."
ITEM 77Q
At a meeting of the Board of Directors of Mathers Fund, Inc.
held on July 13, 1998, the following resolutions were unanimously
adopted:
RESOLVED, that Article I, Section 2 of the Amended and
Restated By-laws of the corporation be, and hereby is, amended by
adding the following paragraph at the end thereof:
Only such business shall be conducted at an
annual meeting of stockholders as shall have
been properly brought before the meeting.
For business to be properly brought before
the meeting, it must be: (i) authorized by
the board of directors and specified in the
notice, or a supplemental notice, of the
meeting, (ii) otherwise brought before the
meeting by or at the direction of the board
of directors or the chairman of the meeting,
or (iii) otherwise properly brought before
the meeting by a stockholder who was a
stockholder both at the time of giving of
notice of the annual meeting and at the time
of the annual meeting. For business to be
properly brought before an annual meeting by
a stockholder, the stockholder must have
given written notice thereof to the
Secretary, delivered or mailed to and
received at the principal offices of the
corporation (x) not less than sixty (60) days
prior to the meeting, or (y) if less than
eighty (80) days' notice of the meeting or
prior public disclosure of the date of the
meeting is given or made to stockholders, not
later than the close of business on the
twentieth (20th) day following the day on
which the notice of the meeting was mailed
or, if earlier, the day on which such public
disclosure was made. The public disclosure
of a postponement or adjournment of an annual
meeting to a later date or time shall not
commence a new time period for the giving of
a stockholder's notice as described above. A
stockholder's notice to the Secretary shall
set forth as to each item of business the
stockholder proposes to bring before the
meeting (1) a brief description of such item
and the reasons for conducting such business
at the meeting, (2) the name and address, as
they appear on the corporation's records, of
the stockholder proposing such business, (3)
the number of shares of each class of stock
of the corporation which are beneficially
owned by the stockholder (for purposes of the
regulations under Section 13 of the
Securities Exchange Act of 1934, as amended),
and (4) any material interest of the
stockholder in such business. No business
shall be conducted at any annual meeting
except in accordance with the procedures set
forth in this paragraph. The chairman of the
meeting at which any business is proposed by
a stockholder shall, if the facts warrant,
determine and declare to the meeting that
such business was not properly brought before
the meeting in accordance with the provisions
of this paragraph, and, in such event, the
business not properly before the meeting
shall not be transacted.
FURTHER RESOLVED, that Article I, Section 3 of the
Amended and Restated By-laws of the corporation be, and
hereby is, amended by adding the following sentence at
the end thereof:
The chairman of the special meeting at which
any business is proposed shall, if the facts
warrant, determine and declare to the meeting
that such business was not properly brought
before the meeting in accordance with the
provisions of this section, and, in such
event, the business not properly before the
meeting shall not be transacted.
FURTHER RESOLVED, that Article II, Section 2 of
the Amended and Restated By-laws of the corporation be,
and hereby is, amended by adding the following
paragraph at the end thereof:
Only persons who are nominated in accordance
with the procedures set forth in this
paragraph shall be eligible for election as
directors of the corporation. Nominations of
persons for election to the board of
directors may be made at a meeting of
stockholders by the board of directors or by
any stockholder of the corporation who was a
stockholder both at the time of giving of
notice of the meeting and at the time of the
meeting, who is entitled to vote in the
election of directors at the meeting, and who
complies with the notice procedures set forth
in this paragraph. Any nomination by a
stockholder must be made by written notice to
the Secretary delivered or mailed to and
received at the principal offices of the
corporation (i) not less than sixty (60) days
prior to the meeting, or (ii) if less than
eighty (80) days' notice of the meeting or
prior public disclosure of the date of the
meeting, including the nominees proposed by
the board of directors to be elected at such
meeting, is given or made to stockholders,
not later than the close of business on the
twentieth (20th) day following the day on
which the notice of the meeting was mailed
or, if earlier, the day on which such public
disclosure was made. The public disclosure
of a postponement or adjournment of a
stockholders' meeting to a later date or time
shall not commence a new time period for the
giving of a stockholder's notice as described
above. A stockholder's notice to the
Secretary shall set forth (x) as to each
person whom the stockholder proposes to
nominate for election or re-election as a
director: (1) the name, age, business
address and residence address of such person,
(2) the principal occupation or employment of
such person, (3) the number of shares of each
class of stock of the corporation which are
beneficially owned by such person (for the
purposes of the regulations under Section 13
of the Securities Exchange Act of 1934, as
amended), and (4) any other information
relating to such person that would be
required to be disclosed in solicitations of
proxies for the election of such person as a
director of the corporation pursuant to
Regulation 14A under the Securities Exchange
Act of 1934, as amended, or Section 20 of the
Investment Company Act of 1940, as amended,
or their respective successor provisions, and
such person's written consent to being named
in any proxy statement as a nominee and to
serving as a director if elected; and (y) as
to the stockholder giving notice (5) the name
and address, as they appear on the
corporation's records, of such stockholder
and (6) the number of shares of stock of the
corporation which are beneficially owned by
such stockholder (determined as provided in
clause (x)(3) above). At the request of the
board of directors, any person nominated by
the board of directors for election as a
director shall furnish to the Secretary that
information required to be set forth in a
stockholder's notice of nomination which
pertains to the nominee. The chairman of the
meeting at which a stockholder nomination is
presented shall, if the facts warrant,
determine and declare to the meeting that
such nomination was not made in accordance
with the procedures prescribed by this
paragraph, and, in such event, the defective
nomination shall be disregarded.
