SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a) of
the Securities Exchange Act of 1934 (Amendment No. )
Filed by the Registrant /x/
Filed by a Party other than the Registrant / /
Check the appropriate box:
/ / Preliminary Proxy Statement
/ / Confidential, for Use of the Commission Only (as permitted by
Rule 14a-6(e)(2))
/ / Definitive Proxy Statement
/ / Definitive Additional Materials
/x/ Soliciting Material Pursuant to ss.240.14a-11(c) or ss.240.14a-12
THE FIRST AUSTRALIA FUND, INC.
------------------------------
(Name of Registrant as Specified In Its Charter)
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
Payment of Filing Fee (Check the appropriate box):
/x/ No fee required.
/ / Fee computed on table below per Exchange Act Rules 14a-6(i)(1)
and 0-11.
(1) Title of each class of securities to which transaction applies:
(2) Aggregate number of securities to which transaction applies:
(3) Per unit price or other underlying value of transaction computed
pursuant to Exchange Act Rule 0-11 (set forth the amount on which
the filing fee is calculated and state how it was determined):
(4) Proposed maximum aggregate value of transaction:
(5) Total fee paid:
/ / Fee paid previously with preliminary materials.
/ / Check box if any part of the fee is offset as provided by Exchange Act
Rule 0-11(a)(2) and identify the filing for which the offsetting fee was
paid previously. Identify the previous filing by registration statement
number, or the Form or Schedule and the date of its filing.
(1) Amount Previously Paid:
(2) Form, Schedule or Registration Statement No.:
(3) Filing Party:
(4) Date Filed:
<PAGE>
FOR IMMEDIATE RELEASE
For More Information Contact:
Laurence Freedman, The First Australia Fund,
011-612-9950-2888
http://www.equitilink.com
Richard Strickler, EquitiLink USA,
800-522-5465
Judy Inosanto or Ralph Richardson
Dewe Rogerson Inc., 800-626-0993
THE FIRST AUSTRALIA FUND FILES PRELIMINARY PROXY STATEMENT
----------------------------------------------------------
(New York, NY, March 11, 1999) -- The First Australia Fund, Inc.
(AMEX:IAF, PCX:IAF), said today that it has filed preliminary proxy materials
with the Securities and Exchange Commission in connection with the Fund's Annual
Meeting of Shareholders. The preliminary proxy statement indicates the Fund's
opposition to five proposals which the Fund has been advised will be presented
at the Meeting. The proposals are (a) a slate of five individuals as Class II
Directors in place of the Fund's nominees (b) termination of the investment
management agreement with EquitiLink International Management Limited within 60
days (c) a recommendation that the Board of Directors take whatever steps are
necessary to give all shareholders the option to receive net asset value for
their shares within 60 days of the Annual Meeting (d) a recommendation that all
directors not standing for election at the Annual Meeting who oppose the
resolution referred to in clause (c) resign their positions as directors and (e)
a recommendation that the Board of Directors approve the reimbursement by the
Fund of the reasonable fees and expenses associated with the proponents' initial
proxy communication (including only printing, mailing, distribution and
tabulating costs, but not including attorneys' fees or other solicitation fees).
The First Australia Fund, Inc. and certain other persons named below may solicit
proxies to (a) elect five directors to serve as Class II Directors for a
three-year term, (b) ratify the selection of independent auditors, and (c) vote
against certain shareholder proposals. The participants in this solicitation may
include the directors of the Fund: Anthony E. Aaronson, Sir Roden Cutler, David
Lindsay Elsum, Rt. Hon. Malcolm Fraser, Laurence S. Freedman (Chairman), Michael
R. Horsburgh, Harry A. Jacobs, Jr., Howard A. Knight, Richard H. McCoy, Neville
J. Miles, William J. Potter, John T. Sheehy, Brian M. Sherman (President), of
whom Messrs. Fraser, Jacobs, Knight, McCoy and Sherman are nominees as Class II
Directors; the other executive officers of the Fund: (David Manor, Treasurer,
Ouma Sananikone-Fletcher, Assistant Vice President - Chief Investment Officer,
and Barry G. Sechos, Assistant Treasurer); and the following employees of
EquitiLink Australia Limited, the Fund's Investment Adviser: Craig A. Hood,
Director - Head of Equities, Irfan N. Khan, Product Manager - Overseas Funds,
Munib Madni, Equity Portfolio Manager, and Vincent John Parrott, Director -
Business Operations.
As controlling shareholders of EquitiLink International Management Limited, the
Fund's Investment Manager, Messrs. Freedman and Sherman share investment and
voting power for 46,062 shares of the Fund owned by EquitiLink International
Management Limited. As of the date of this communication, none of the
participants named above owns individually or in the aggregate in excess of 1%
of the total outstanding shares of the Fund.
Messrs. Freedman, Sherman, Manor, Sechos, Hood, Khan, Madni, Parrott and
Ms. Sananikone-Fletcher may be deemed to have a substantial interest in
the shareholder proposals because of their share ownership in, or any
employment relationship with, the Fund's Investment Manager or Investment
Adviser.
