SCHEDULE 14A
(RULE 14a-101)
INFORMATION REQUIRED IN PROXY STATEMENT
SCHEDULE 14A INFORMATION
PROXY STATEMENT PURSUANT TO SECTION 14(A) OF THE SECURITIES
EXCHANGE ACT OF 1934
Filed by the Registrant [X]
Filed by a party other than the Registrant [_]
Check the appropriate box:
[_] Preliminary proxy statement.
[X] Definitive proxy statement.
[_] Definitive additional materials.
[_] Soliciting material under Rule 14a-12.
[_] Confidential, for use of the Commission only (as permitted by Rule
14a-6(e)(2)).
THE GERMANY 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:
-2-
THE GERMANY FUND, INC.
345 PARK AVENUE
NEW YORK, NEW YORK 10154
----------
NOTICE OF ANNUAL MEETING OF STOCKHOLDERS
JUNE 21, 2005
----------
To our Stockholders:
Notice is hereby given that the Annual Meeting of Stockholders (the
"Meeting") of The Germany Fund, Inc., a Maryland corporation (the "Fund"), will
be held at 10:00 A.M., New York time, on June 21, 2005 at the offices of
Deutsche Bank, 345 Park Avenue, New York, New York 10154 for the following
purposes:
1. To elect three (3) Directors, each to serve for terms of three years
and until their successors are elected and qualify.
2. To ratify the appointment by the Audit Committee and the Board of
Directors of PricewaterhouseCoopers LLP, an independent registered
public accounting firm, as independent auditors for the fiscal year
ending December 31, 2005.
3. To transact such other business as may properly come before the
Meeting or any postponement or adjournment thereof.
Only holders of record of Common Stock at the close of business on May 3,
2005 are entitled to notice of, and to vote at, this Meeting or any postponement
or adjournment thereof.
If you have any questions or need additional information, please contact
Georgeson Shareholder Communications Inc., the Fund's proxy solicitors, at 17
State Street, New York, New York 10004, or by telephone at 1-800-221-4215.
By Order of the Board of Directors
Bruce A. Rosenblum
Secretary
Dated: May 18, 2005
WHETHER OR NOT YOU EXPECT TO ATTEND THE MEETING, PLEASE SIGN THE ENCLOSED
PROXY CARD AND PROMPTLY RETURN IT TO THE FUND. WE ASK YOUR COOPERATION IN
MAILING IN YOUR PROXY CARD PROMPTLY, SO THAT THE FUND DOES NOT INCUR ANY
ADDITIONAL EXPENSES OF SOLICITATION OF PROXIES.
THE GERMANY FUND, INC.
345 PARK AVENUE
NEW YORK, NEW YORK 10154
ANNUAL MEETING OF STOCKHOLDERS
JUNE 21, 2005
---------------
PROXY STATEMENT
---------------
This Proxy Statement is furnished by the Board of Directors of The Germany
Fund, Inc. (the "Board of Directors" or "Board"), a Maryland corporation (the
"Fund"), in connection with the solicitation of proxies for use at the Annual
Meeting of Stockholders (the "Meeting") to be held at 10:00 A.M., New York time,
on June 21, 2005 at the offices of Deutsche Bank, 345 Park Avenue, New York, New
York 10154. The purpose of the Meeting and the matters to be considered are set
forth in the accompanying Notice of Annual Meeting of Stockholders.
If the accompanying Proxy Card is executed properly and returned, shares
represented by it will be voted at the Meeting, and any postponement or
adjournment thereof, in accordance with the instructions on the Proxy Card.
However, if no instructions are specified, shares will be voted FOR the election
of three (3) directors of the Fund ("Directors") nominated by the Board
(Proposal 1) and FOR the ratification of the appointment by the Audit Committee
and the Board of PricewaterhouseCoopers LLP, an independent registered public
accounting firm, as independent auditors for the Fund (Proposal 2). A proxy may
be revoked at any time prior to the time it is voted by written notice to the
Secretary of the Fund, by submitting a subsequently executed and dated proxy or
by attending the Meeting and voting in person. If a stockholder owns shares of
the Fund in violation of applicable law, including the Investment Company Act of
1940, as amended (the "1940 Act"), the Fund may determine that any vote
attributable to such shares shall not be counted, or that such shares will not
be counted for quorum purposes, or both. Under Section 12(d)(1) of the 1940 Act,
the acquisition of more than 3% of the Fund's common stock by another fund
(whether registered, private or offshore) is unlawful. The votes cast on behalf
of any such fund or by any other stockholder whose holdings are unlawful will be
invalid.
The close of business on May 3, 2005 has been fixed as the record date for
the determination of stockholders entitled to notice of, and to vote at, the
Meeting. On that date, the Fund had 14,818,892 shares of Common Stock
outstanding and entitled to vote. Each share will be entitled to one vote on
each matter that comes before the Meeting. It is expected that the Notice of
Annual Meeting, this Proxy Statement and the form of Proxy Card will first be
mailed to stockholders on or about May 18, 2005. If you hold your shares in a
brokerage or bank account, your broker or bank may allow you to vote your shares
by telephone or internet. Please consult the materials you receive from your
broker or bank prior to voting by telephone or internet.
A quorum is necessary to hold a valid meeting. If stockholders entitled to
cast one-third of all votes entitled to be cast at the Meeting are present in
person or by proxy, a quorum will be established. The Fund intends to treat
properly executed proxies that are marked "abstain" and broker non-votes
(defined below) as present for the purposes of determining whether a quorum has
been achieved at the Meeting. Under Maryland law, abstentions do not constitute
a vote "for" or "against" a matter and will be disregarded in determining the
"votes cast" on an issue. A "broker non-vote" occurs when a broker holding
shares for a beneficial owner does not vote on a particular matter because the
broker does not have discretionary voting power with respect to that matter and
has not received instructions from the beneficial owner.
PROPOSAL 1: ELECTION OF DIRECTORS
The Fund's charter (the "Charter") provides that the Board of Directors be
divided into three classes of Directors serving staggered three-year terms and
until their successors are elected and qualify. The term of office for Directors
in Class III expires at the 2005 Annual Meeting, Class I at the next succeeding
Annual Meeting and Class II at the following succeeding Annual Meeting. Three
Class III nominees are proposed in this Proxy Statement for election. The three
Class III nominees, Messrs. Fred H. Langhammer, Christian Strenger and Werner
Walbrol, are the only persons nominated by your Board of Directors for election
at this Meeting and, if elected, each will serve a three-year term of office
until the Annual Meeting of Stockholders in 2008 and until his respective
successor is elected and qualifies.
Should any vacancy occur on the Board of Directors, the remaining
Directors would be able to fill that vacancy by the affirmative vote of a
majority of the remaining Directors in office, even if the remaining Directors
do not constitute a quorum. Any Director elected by the Board to fill a vacancy
would hold office until the remainder of the full term of the class of Directors
in which the vacancy occurred and until a successor is elected and qualifies. If
the size of the Board is increased, additional Directors will be apportioned
among the three classes to make all classes as nearly equal as possible.
Unless authority is withheld, it is the intention of the persons named in
the accompanying form of Proxy Card to vote each Proxy Card for the election of
our three Class III nominees listed above. Each of our Class III nominees is
currently a member of the Board of Directors. Each Class III nominee has
indicated that he will continue to serve as a Director if elected, but if any
nominee should be unable to serve, proxies will be voted for any other person
determined by the persons named in the form of Proxy Card in accordance with
their discretion. The Board of Directors has no reason to believe that any of
the above nominees will be unable to continue to serve as a Director.
INFORMATION REGARDING DIRECTORS AND OFFICERS
The following table shows certain information about the nominees for
election as Directors and about Directors whose terms will continue, including
beneficial ownership of Common Stock of the Fund. Each has served as a Director
of the Fund since the Fund's inception in 1986, except for Ambassador Burt, who
was elected to the Board on June 30, 2000, Mr. Langhammer, who was elected to
the Board on May 9, 2003, Mr. Cannon, who was elected to the Board on April 23,
2004, and Dr. Bock, who was elected to the Board on May 5, 2004.
2
NOMINEES PROPOSED FOR ELECTION:
---------------------------------------------------------------------------------------------------------------------------------
CLASS III DIRECTORS
(TERM WILL EXPIRE 2005; NOMINEES FOR TERM EXPIRING IN 2008)
---------------------------------------------------------------------------------------------------------------------------------
NUMBER OF
PORTFOLIOS SHARES OF
IN FUND COMMON
TERM OF COMPLEX(2) STOCK
OFFICE AND OVERSEEN BY BENEFICIALLY
NAME, POSITION(S) LENGTH DIRECTOR OR OWNED AT
ADDRESS(1) WITH OF TIME PRINCIPAL OCCUPATION(S) NOMINEE FOR OTHER DIRECTORSHIPS HELD BY MARCH 31,
& AGE FUND SERVED DURING PAST FIVE YEARS DIRECTOR DIRECTOR OR NOMINEE FOR DIRECTOR 2005(3)
----------- ----------- ---------- ----------------------- ----------- -------------------------------- ------------
NON-INTERESTED DIRECTORS
Fred H. Director Since Chairman, Global Affairs, 2 Director of The Central Europe None
Langhammer, 2003 The Estee Lauder and Russia Fund, Inc. (since
61(4) Companies Inc. 2003).(2) Director, Gillette
(manufacturer and Company. Director, Inditex,
marketer of cosmetics) S.A. (apparel manufacturer and
(since July 2004); Chief retailer). Director,
Executive Officer, German-American Chamber of
(2000-2004); President Commerce, Inc. Co-Chairman,
(1995-2004), Chief American Institute for
Operating Officer Contemporary German Studies at
(1985-1999); Managing Johns Hopkins University.
Director, operations in Senior Fellow, Foreign Policy
Germany (1982-1985); Association. Director, The
President, operations in Walt Disney Company
Japan (1975-1982). (entertainment).
Werner Director Since President and Chief 3 Director of The Central Europe 4,162
Walbrol, 1986 Executive Officer, and Russia Fund, Inc. (since
67(12) The European 1990) and The New Germany
American Chamber of Fund, Inc. (since 2004)(2);
Commerce, Inc. Director, TUV Rheinland of
Senior Adviser, North America, Inc.
Coudert Brothers LLP (independent testing and
(law firm). assessment services).
Formerly, President Director, The German American
and Chief Executive Chamber of Commerce, Inc.
Officer, The German President and Director,
American Chamber of German-American Partnership
Commerce, Inc. Program (student exchange
(until 2003). programs). Director, AXA Art
Insurance Corporation (fine
art and collectible insurer).
INTERESTED DIRECTOR(5)
Christian H. Director Since Director (since 3 Director of The New Germany None
Strenger, 61 and 1986 1999) and formerly Fund, Inc. (since 1990) and
Chairman Managing Director The Central Europe and Russia
(1991-1999) of DWS Fund, Inc. (since 1990).(2)
Investment GmbH Member, Supervisory Board,
(investment Fraport AG (international
management), a airport business). Board
subsidiary of member, Incepta PLC (media and
Deutsche Bank AG. advertising). Non-executive
Board Member of Hermes Focus
Asset Management Europe Ltd.
3
DIRECTORS WHOSE TERMS WILL CONTINUE:
---------------------------------------------------------------------------------------------------------------------------------
CLASS I DIRECTORS
(TERM WILL EXPIRE IN 2006)
---------------------------------------------------------------------------------------------------------------------------------
NUMBER OF
PORTFOLIOS SHARES OF
IN FUND COMMON
TERM OF COMPLEX(2) STOCK
OFFICE AND OVERSEEN BY BENEFICIALLY
NAME, POSITION(S) LENGTH DIRECTOR OR OWNED AT
ADDRESS(1) WITH OF TIME PRINCIPAL OCCUPATION(S) NOMINEE FOR OTHER DIRECTORSHIPS HELD BY MARCH 31,
& AGE FUND SERVED DURING PAST FIVE YEARS DIRECTOR DIRECTOR OR NOMINEE FOR DIRECTOR 2005(3)
----------- ----------- ---------- ----------------------- ----------- -------------------------------- ------------
NON-INTERESTED DIRECTORS
Dr. Kurt W. Director Since Member of the Board 2 Director of The Central Europe None
Bock, 46(6) 2004 of Executive and Russia Fund, Inc. (since
Directors and CFO, 2004).(2) Member of the
BASF Supervisory Boards of
Aktiengesellschaft Wintershall AG (since 2003)
(chemicals) (since and Basell N.V. (since 2003).
2003); President, Member of the Advisory Boards
Logistics and of WINGAS GmbH (since 2003),
Information WIEH GmbH (since 2003),
Services, BASF Landesbank Baden- Wurttemberg
Aktiengesellschaft (since 2003), Initiative D21
(2000-2003); Chief (since 2003), DBW ("Die
Financial Officer, Betriebswirtschaft") (since
BASF Corporation 2003), and Gesellschaft fur
(1998-2000). Unternehmensplanung (IUP)
Managing Director, (since 2004). Member of the
Robert Bosch Ltda. Boards of BASFIN Corporation
(automotive and (since 2002), Deutsches
industrial products) Rechnungslegungs Standards
(1996-1998); Senior Committee ("DRSC") (since
Vice President, 2003),
Finance and Schmalenbachgesellschaft
Accounting, Robert (since 2004), and Jacob Gould
Bosch GmbH Schurman Stiftung (since
(1994-1996); Senior 2004). Member of the Trustees
Vice President, of ArbeitskreisEvangelischer
Finance, Robert Unternehmer ("AEU") (since
Bosch GmbH 2003). Member of the Advisory
(1992-1994); Head of Council of Deutsche Bank AG
Technology, Planning (since June 2004). Member of
and Controlling, the Advisory Board of Gebr.
Engineering Plastics Rochling KG (since May 2004).
division, BASF
Aktiengesellschaft
(1991-1992);
Executive Assistant
to BASF's Chief
Financial Officer
(1987-1991).
John H. Director Since Consultant (since 2002). 3 Director of The New Germany 390
Cannon, 63 2004 Vice President and Fund, Inc. (since 1990) and
Treasurer, Venator The Central Europe and Russia
Group/Footlocker Inc. Fund, Inc. (since 2004).(2)
(footwear retailer)
(until 2001).
4
---------------------------------------------------------------------------------------------------------------------------------
CLASS I DIRECTORS
(TERM WILL EXPIRE 2006)
---------------------------------------------------------------------------------------------------------------------------------
NUMBER OF
PORTFOLIOS SHARES OF
IN FUND COMMON
TERM OF COMPLEX(2) STOCK
OFFICE AND OVERSEEN BY BENEFICIALLY
NAME, POSITION(S) LENGTH DIRECTOR OR OWNED AT
ADDRESS(1) WITH OF TIME PRINCIPAL OCCUPATION(S) NOMINEE FOR OTHER DIRECTORSHIPS HELD BY MARCH 31,
& AGE FUND SERVED DURING PAST FIVE YEARS DIRECTOR DIRECTOR OR NOMINEE FOR DIRECTOR 2005(3)
----------- ----------- ---------- ----------------------- ----------- -------------------------------- ------------
INTERESTED DIRECTOR(5)
Detlef Director Since Partner of Sal. 2 Director of The Central Europe None
Bierbaum, 62 1986 Oppenheim Jr. & Cie KGaA and Russia Fund, Inc. (since
(investment management) 1990).(2) Member of
(over five years). Supervisory Board, Tertia
Handelsbeteiligungsgesellschaft
mbH (electronics retailer).
Member of Supervisory Board,
Douglas AG (retailer). Member
of Supervisory Board, LVM
Landwirtschaftlicher
Versicherungsverein
(insurance). Member of
Supervisory Board, Monega KAG.
Member of Supervisory Board,
AXA Investment Managers GmbH
(investment company). Chairman
of Supervisory Board,
Oppenheim
Kapitalanlagegesellschaft mbH
(investment company). Chairman
of Administrative Board,
Oppenheim Prumerica Asset
Management S.a.r.l.
(investment company). Member
of Supervisory Board, Atradius
N.V. (insurance company).
Member of the Supervisory
Board of DWS Investment GmbH.
Member of the Board of Duindee
REIT, Toronto.
---------------------------------------------------------------------------------------------------------------------------------
CLASS II DIRECTORS
(TERM WILL EXPIRE IN 2007)
---------------------------------------------------------------------------------------------------------------------------------
NUMBER OF
PORTFOLIOS SHARES OF
IN FUND COMMON
TERM OF COMPLEX(2) STOCK
OFFICE AND OVERSEEN BY BENEFICIALLY
NAME, POSITION(S) LENGTH DIRECTOR OR OWNED AT
ADDRESS(1) WITH OF TIME PRINCIPAL OCCUPATION(S) NOMINEE FOR OTHER DIRECTORSHIPS HELD BY MARCH 31,
& AGE FUND SERVED DURING PAST FIVE YEARS DIRECTOR DIRECTOR OR NOMINEE FOR DIRECTOR 2005(3)
----------- ----------- ---------- ----------------------- ----------- -------------------------------- ------------
NON-INTERESTED DIRECTORS
Ambassador Director Since Chairman, Diligence LLC 54 Director of The Central Europe 3,535
Richard R. 2000 (international and Russia Fund, Inc. (since
Burt, 58 information collection 2000) and The New Germany
and risk management Fund, Inc. (since 2004), as
firm) (since 2002). well as other funds in the
Chairman, IEP Advisors Fund Complex as indicated.(7)
Inc. (information Board Member, IGT, Inc.
services firm) (1998- (gaming technology) (since
2001). Chairman of the 1995). Board Member, Hollinger
Board, Weirton Steel International (printing and
Corp. (1996-2004). publishing) (since 1995).
Formerly, Partner, Board Member, HCL
McKinsey & Company Technologies, Inc.
(consulting firm) (information technology and
(1991-1994). U.S. product engineering) (since
Ambassador to the 1999). Member, Textron Inc.
Federal Republic of International Advisory Council
Germany (1985-1991). (aviation, automotive,
industrial operations and
finance) (since 1996).
Director, UBS family of mutual
funds (since 1995).
5
---------------------------------------------------------------------------------------------------------------------------------
CLASS II DIRECTORS
(TERM WILL EXPIRE IN 2007)
---------------------------------------------------------------------------------------------------------------------------------
NUMBER OF
PORTFOLIOS SHARES OF
IN FUND COMMON
TERM OF COMPLEX(2) STOCK
OFFICE AND OVERSEEN BY BENEFICIALLY
NAME, POSITION(S) LENGTH DIRECTOR OR OWNED AT
ADDRESS(1) WITH OF TIME PRINCIPAL OCCUPATION(S) NOMINEE FOR OTHER DIRECTORSHIPS HELD BY MARCH 31,
& AGE FUND SERVED DURING PAST FIVE YEARS DIRECTOR DIRECTOR OR NOMINEE FOR DIRECTOR 2005(3)
----------- ----------- ---------- ----------------------- ----------- -------------------------------- ------------
NON-INTERESTED DIRECTORS
Robert H. Director Since President, Robert H. 79 Director of The New Germany 4,109
Wadsworth, 1986. Wadsworth Associates, Fund, Inc. (since 1992) and
65 Inc. (consulting firm) The Central Europe and Russia
(since 1983). Formerly, Fund, Inc. (since 1990) as
President and Trustee, well as other funds in the
Trust for Investment Fund Complex as indicated.(9)
Managers (registered
investment companies)
(1999-2002). President,
Investment Company
Administration, L.L.C.
(1992(8)-2001).
President, Treasurer and
Director, First Fund
Distributors, Inc.
(mutual fund
distribution)
(1990-2002). Vice
President,
Professionally Managed
Portfolios (1991-2002)
and Advisors Series
Trust (registered
investment companies)
(1996-2002).
INTERESTED DIRECTOR(5)
John Bult, Director Since Chairman, PaineWebber 3 Director of The New Germany 3,013
69 1986. International (asset Fund, Inc. (since 1990) and
management) (since The Central Europe and Russia
1985). Fund, Inc. (since 1990).(2)
Director of The Greater China
Fund, Inc. (closed-end fund).
---------------------------------------------------------------------------------------------------------------------------------
EXECUTIVE OFFICERS(10)
---------------------------------------------------------------------------------------------------------------------------------
SHARES OF
COMMON
TERM OF STOCK
OFFICE AND BENEFICIALLY
NAME, POSITION(S) LENGTH OWNED AT
ADDRESS(1) WITH OF TIME PRINCIPAL OCCUPATION(S) MARCH 31,
& AGE FUND SERVED DURING PAST FIVE YEARS 2005(3)
----------- ----------- ---------- ----------------------- ------------
Julian President and Since 2004 Managing Director, Deutsche Asset Management (since 2004). None
Sluyters, Chief Executive Formerly, President and Chief Executive Officer, UBS Fund
44 Officer Services (2001-2003); Chief Administrative Officer
(1998-2001) and Senior Vice President and Director of Mutual
Fund Operations (1991-1998), UBS Global Asset Management.
Paul H. Chief Financial Since 2004 Managing Director, Deutsche Asset Management (since 2004). None
Schubert, Officer Formerly, Executive Director, Head of Mutual Fund Services
42 and Treasurer for UBS Family of Funds at UBS Global Asset
Management (1994-2004); Vice President and Director of
Mutual Fund Finance at UBS Global Asset Management
(1994-1998).
Sandra M. Chief Investment Since 2004 Director, Deutsche Asset Management (since 2004). Formerly, None
Schaufler, Officer Director of Equity Sales, HVB Capital Markets (2001-2003);
37(11)(13) Portfolio Manager, Deutsche Asset Management (1997-2001).
Vincent J. Vice President Since 2003 Managing Director, Deutsche Asset Management (since 2003). None
Esposito, Formerly, Managing Director and Head of Relationship
48(11) Management, Putnam Investments (1999-2003).
6
---------------------------------------------------------------------------------------------------------------------------------
EXECUTIVE OFFICERS(10)
---------------------------------------------------------------------------------------------------------------------------------
SHARES OF
COMMON
TERM OF STOCK
OFFICE AND BENEFICIALLY
NAME, POSITION(S) LENGTH OWNED AT
ADDRESS(1) WITH OF TIME PRINCIPAL OCCUPATION(S) MARCH 31,
& AGE FUND SERVED DURING PAST FIVE YEARS 2005(3)
----------- ----------- ---------- ----------------------- ------------
Bruce A. Secretary Since 2003 Director, Deutsche Asset Management (since 2002). Formerly, None
Rosenblum, Vice President of Deutsche Asset Management (2000-2002); and
44(11) partner with the law firm of Freedman, Levy, Kroll & Simonds
(1997-2000).
Charles A. Treasurer Since 2003 Managing Director, Deutsche Asset Management (since 2004). None
Rizzo, Formerly, Director, Deutsche Asset Management (2000-2004);
45(11) Vice President and Department Head, BT Alex. Brown
Incorporated (now Deutsche Bank Securities Inc.)
(1998-1999); Senior Manager, Coopers & Lybrand L.L.P. (now
PricewaterhouseCoopers LLP) (1993-1998).
Kathleen Assistant Since 2003 Director, Deutsche Asset Management (since 2002). Manager, None
Sullivan Treasurer SevenFortyNine, L.L.C. (commercial and residential property)
D'Eramo, (since 2005). Formerly, Senior Vice President, Zurich
48(11) Scudder Investments (2000-2002); Vice President, Zurich
Scudder Investments and its predecessor companies
(1995-2000).
-------
(1) The mailing address of all directors and officers with respect to Fund
operations is c/o Deutsche Investment Management Americas Inc., 345 Park
Avenue, NYC20-2799, New York, New York 10154.
(2) The Fund Complex includes The Central Europe and Russia Fund, Inc. and The
New Germany Fund, Inc., which are the other closed-end registered
investment companies for which Deutsche Investment Management Americas
Inc. acts as manager. It also includes 186 other open- and closed-end
funds advised by wholly-owned entities of the Deutsche Bank Group in the
United States.
(3) All Directors and Executive Officers as a group (16 persons) owned 15,209
shares, which constitutes less than 1% of the outstanding Common Stock of
the Fund. Share numbers in this Proxy Statement have been rounded to the
nearest whole share.
(4) In December 2001, Mr. Langhammer's two adult children borrowed $1 million
from a Deutsche Bank Group company. As of April 1, 2004 the loan was fully
paid off.
(5) Indicates "Interested Person", as defined in the Investment Company Act of
1940, as amended (the "1940 Act"). Mr. Bierbaum is an "interested"
Director because of his affiliation with Sal. Oppenheim Jr. & Cie. KGaA,
which engages in brokerage with the Fund and other accounts managed by the
Fund's investment adviser and manager. Mr. Bult is an "interested"
Director because of his affiliation with PaineWebber International, an
affiliate of UBS Securities LLC, a registered broker-dealer. Mr. Strenger
is an "interested" Director because of his affiliation with DWS-Deutsche
Gesellschaft fur Wertpapiersparen mbH ("DWS"), a majority-owned subsidiary
of Deutsche Bank AG, and because of his ownership of Deutsche Bank AG
shares.
(6) Dr. Tessen von Heydebreck, a managing director of Deutsche Bank, is a
member of the Supervisory Board of BASF-AG, Dr. Bock's employer.
(7) Ambassador Burt serves as a Director/Trustee of the following open-end
investment companies: Scudder Advisor Funds, Scudder Advisor Funds II,
Scudder Advisor Funds III, Scudder Institutional Funds, Scudder Investment
Portfolios, Scudder Cash Management Portfolio, Scudder Treasury Money
Portfolio, Scudder International Equity Portfolio, Scudder Equity 500
Index Portfolio, Scudder Investments VIT Funds, Scudder MG Investments
Trust, Scudder Investors Funds, Inc., Scudder Flag Investors Value Builder
Fund, Inc., Scudder Flag Investors Equity Partners Fund, Inc., Scudder
Flag Investors Communications Fund, Inc., Cash Reserves Fund, Inc. and
Scudder RREEF Securities Trust. Ambassador Burt also serves as a Director
of Scudder RREEF Real Estate Fund, Inc. and Scudder RREEF Real Estate Fund
II, Inc., which are closed-end investment companies. These funds are
advised by either Deutsche Asset Management, Inc., Deutsche Asset
Management Investment Services Limited, or Investment Company Capital
Corp, each an indirect, wholly-owned subsidiary of Deutsche Bank AG.
(8) Inception date of corporation which was predecessor to the LLC.
(9) Mr. Wadsworth serves as a Director/Trustee of the following investment
companies: Scudder Aggressive Growth Fund, Scudder Blue Chip Fund, Scudder
Equity Trust, Scudder High Income Series, Scudder Investors Trust, Scudder
State Tax-Free Income Series, Scudder Strategic Income Fund, Scudder
Target Fund, Scudder Technology Fund, Scudder Total Return Fund, Scudder
U.S. Government Securities Fund, Scudder Value Series, Inc., Scudder
Variable Series II, Cash Account Trust, Cash Equivalent Fund, Investors
Cash Trust, Investors Municipal Cash Fund, Scudder Portfolios, Tax-Exempt
California Money Market Fund, Scudder Money Funds, Scudder Yieldwise
Funds, Scudder High Income Trust, Scudder Intermediate Government Trust,
Scudder Multi-Market Income Trust, Scudder Municipal Income Trust, Scudder
Strategic Income Trust, and Scudder Strategic Municipal Income Trust.
(footnotes continued on next page)
7
(footnotes continued from previous page)
(10) Each also serving as an officer of The New Germany Fund, Inc. and The
Central Europe and Russia Fund, Inc. The officers of the Fund are elected
annually by the Board of Directors at its meeting following the Annual
Meeting of Stockholders. Each of Messrs. Sluyters, Schubert, Rosenblum and
Rizzo, and Ms. D'Eramo also serves as an officer of other funds in the
Fund Complex.
(11) Indicates ownership of securities of Deutsche Bank either directly or
through Deutsche Bank's deferred compensation plan.
(12) Mr. Walbrol has a mortgage loan through Deutsche Bank. As of March 16,
2005, the principal amount outstanding was $601,295.77.
(13) Ms. Schaufler's husband, Mr. Hanspeter Ackermann, is the former Chief
Investment Officer for the Fund (resigned March 2004).
The following table contains additional information with respect to the
beneficial ownership of equity securities by each Director or Nominee in the
Fund and, on an aggregated basis, in any registered investment companies
overseen by the Director or Nominee within the same Family of Investment
Companies as the Fund:
AGGREGATE DOLLAR RANGE OF EQUITY SECURITIES
DOLLAR RANGE OF EQUITY IN ALL FUNDS OVERSEEN BY DIRECTOR OR NOMINEE
NAME OF DIRECTOR OR NOMINEE SECURITIES IN THE FUND(1) IN FAMILY OF INVESTMENT COMPANIES(1),(2)
--------------------------- ------------------------- --------------------------------------------
Detlef Bierbaum None None
Dr. Kurt W. Bock None None
John Bult $10,001 - $50,000 over $100,000
Ambassador Richard R. Burt $10,001 - $50,000 $50,001 - $100,000
John H. Cannon $1-$10,000 $10,001 - $50,000
Fred H. Langhammer None None
Christian H. Strenger None $10,001 - $50,000
Robert H. Wadsworth $10,001 - $50,000 over $100,000
Werner Walbrol $10,001 - $50,000 over $100,000
----------
(1) Valuation date is March 31, 2005.
(2) The Family of Investment Companies consists of the Fund, The New Germany
Fund, Inc. and The Central Europe and Russia Fund, Inc., which are
closed-end funds and share the same investment adviser and manager and
hold themselves out as related companies.
The Board of Directors presently has five standing committees including an
audit committee (the "Audit Committee"), an advisory committee (the "Advisory
Committee"), an executive committee (the "Executive Committee"), a nominating
committee (the "Nominating Committee") and a special committee on shareholder
initiatives (the "Special Shareholder Initiatives Committee").
The Audit Committee, comprising Messrs. Burt, Cannon, Wadsworth and
Walbrol, operates pursuant to a written charter. The Audit Committee's
organization and responsibilities are contained in the Audit Committee Report,
which is included in this Proxy Statement, and in its written charter. The
members of the Audit Committee are "independent" as required by the independence
standards of Rule 10A-3 under the Securities Exchange Act of 1934. The Board of
Directors has determined that each member of the Audit Committee is financially
literate and has determined that each of Messrs. Cannon and Wadsworth meets the
requirements for an audit committee financial expert under the rules of the
Securities and Exchange Commission ("SEC"). Although the Board has determined
that these individuals meet the requirements for an audit committee financial
expert, their responsibilities are the same as those of the other audit
committee members. They are not auditors or accountants, do not perform "field
work" and are not full-time employees. The SEC has determined that an audit
committee member who is designated as an audit committee financial expert will
not be deemed to be an "expert" for any purpose as a result of being identified
as an audit committee financial expert. The Audit Committee met seven times
during the fiscal year ended December 31, 2004.
8
The Advisory Committee, comprising Messrs. Bierbaum, Burt, Wadsworth and
Walbrol, makes recommendations to the full Board with respect to the Management
Agreement between the Fund and Deutsche Investment Management Americas Inc., and
the Investment Advisory Agreement between the Fund and Deutsche Asset Management
International GmbH ("DeAM"). The Advisory Committee met once during the past
fiscal year, in connection with the annual continuance of those agreements.
The Executive Committee, comprising Messrs. Burt, Strenger, Wadsworth and
Walbrol, has the authority to act for the Board on all matters between meetings
of the Board subject to any limitations under applicable state law. During the
past fiscal year the Executive Committee did not meet.
The Special Shareholder Initiatives Committee, comprising Messrs. Bult,
Burt, Cannon, Wadsworth and Walbrol, has the authority to act for the Board on
all matters relating to stockholder initiatives. The Special Shareholder
Initiatives Committee met once during the past fiscal year.
The Nominating Committee comprises of Messrs. Burt, Wadsworth and Walbrol.
The Board has determined that each of the members is not an "interested person"
as the term is defined in Section 2(a)(19) of the Investment Company Act of
1940, as amended. The Nominating Committee's organization and responsibilities
are set forth in the Nominating Committee Charter, which is attached hereto as
Annex A. Generally, the Nominating Committee identifies, evaluates and selects
and nominates, or recommends to the Board of Directors, candidates for the Board
or any committee of the Board. To be eligible for nomination as a Director a
person must, at the time of such person's nomination, have Relevant Experience
and Country Knowledge and must not have any Conflict of Interest, as those terms
are defined in the Fund's Bylaws. The relevant portions of the Fund's Bylaws
describing these requirements are included as Annex B. The Nominating Committee
may also take into account additional factors listed in the Nominating Committee
Charter, which generally relate to the nominee's industry knowledge, business
experience, education, ethical reputation, special skills, ability to work well
in group settings and the ability to qualify as an "independent director."
The Nominating Committee will consider nominee candidates properly
submitted by stockholders in accordance with applicable law, the Fund's Charter
or Bylaws, resolutions of the Board and the qualifications and procedures set
forth in the Nominating Committee Charter and this Proxy Statement. A
stockholder or group of stockholders seeking to submit a nominee candidate (i)
must have beneficially owned at least 5% of the Fund's common stock for at least
two years, (ii) may submit only one nominee candidate for any particular meeting
of stockholders, and (iii) may submit a nominee candidate for only an annual
meeting or other meeting of stockholders at which directors will be elected. The
stockholder or group of stockholders must provide notice of the proposed nominee
pursuant to the requirements found in the Fund's Bylaws. Generally, this notice
must be received not less than 90 days nor more than 120 days prior to the first
anniversary of the date of mailing of the notice for the preceding year's annual
meeting. Such notice shall include the specific information required by the
Fund's Bylaws. The relevant portions describing these requirements are included
as Annex B. The Nominating Committee will evaluate nominee candidates properly
submitted by stockholders on the same basis as it considers and evaluates
candidates recommended by other sources. The Nominating Committee met once
during the past fiscal year.
All members on each of the five committees of the Board are non-interested
persons (except that Mr. Strenger, an interested person, is a member of the
Executive Committee; Mr. Bierbaum, an interested person, is a member of the
Advisory Committee; and Mr. Bult, and interested person, is a member of the
Special Shareholder Initiatives Committee).
9
During the past fiscal year, the Board of Directors had four regular
meetings, and each incumbent Director that served as a Director during the past
fiscal year, with the exception of Mr. Langhammer, attended at least 75% of the
aggregate number of meetings of the Board and meetings of Board Committees on
which that Director served. The Board has a policy that encourages Directors to
attend the Annual Meeting of Stockholders, to the extent travel to the Annual
Meeting of Stockholders is reasonable for that Director. Two Directors attended
the 2004 Annual Meeting of Stockholders.
To communicate with the Board of Directors or an individual Director of
the Fund, a stockholder must send a written communication to the Fund's
principal office at 345 Park Avenue, NYC20-2799, New York, New York 10154 (c/o
The Germany Fund, Inc.), addressed to (i) the Board of Directors of the Fund or
an individual Director, and (ii) the Secretary of the Fund. The Secretary of the
Fund will direct the correspondence to the appropriate parties.
The Fund pays each of its Directors who is not an interested person of the
Fund, of the investment adviser or of the manager an annual fee of $7,500 plus
$750 for each Board and Committee meeting attended. Each such Director who is
also a Director of The New Germany Fund, Inc. or The Central Europe and Russia
Fund, Inc. also receives the same annual and per-meeting fees for services as a
Director of each such fund. No Director of all three funds is paid for attending
more than two funds' board and committee meetings when meetings of the three
funds are held concurrently, and no such Director receives more than the annual
fee of two funds. Each of the Fund, The Central Europe and Russia Fund, Inc. and
The New Germany Fund, Inc. reimburses the Directors (except for those employed
by the Deutsche Bank Group) for travel expenses in connection with Board
meetings. These three funds, together with 186 other open- and closed-end funds
advised by wholly-owned entities of the Deutsche Bank Group in the United
States, represent the entire Fund Complex within the meaning of the applicable
rules and regulations of the SEC. The following table sets forth (a) the
aggregate compensation from the Fund for the fiscal year ended December 31,
2004, and (b) the total compensation from each fund in the Fund Complex that
includes the Fund, for the 2004 fiscal year of each such fund, for (i) each
Director who is not an interested person of the Fund, and (ii) for all such
Directors as a group:
AGGREGATE COMPENSATION TOTAL COMPENSATION
NAME OF DIRECTOR FROM FUND FROM FUND COMPLEX
---------------- ---------------------- ------------------
Dr. Kurt W. Bock $ 5,750 $ 11,500
Ambassador Richard R. Burt $13,000 $199,370
John H. Cannon $ 7,500 $ 28,750
Fred H. Langhammer $ 8,250 $ 17,250
Robert H. Wadsworth $10,500 $171,500
Werner Walbrol $13,500 $ 37,000
------- --------
Total $58,500 $465,370
======= ========
No compensation is paid by the Fund to Directors or officers who are interested
persons of the Fund or of any entity of the Deutsche Bank Group.
THE BOARD UNANIMOUSLY RECOMMENDS A VOTE FOR PROPOSAL 1.
REQUIRED VOTE. Provided a quorum has been established, the affirmative
vote of a plurality of the votes cast at the Meeting is required for the
election of each Director. For purposes of the election of Directors,
abstentions will have no effect on the result of the vote.
10
PROPOSAL 2: RATIFICATION OF APPOINTMENT
OF INDEPENDENT AUDITORS
The Audit Committee has approved PricewaterhouseCoopers LLP (the "Firm" or
"PwC"), an independent registered public accounting firm, as independent
auditors for the Fund for the fiscal year ending December 31, 2005. A majority
of members of the Board of Directors, including a majority of the members of the
Board of Directors who are not "interested" Directors (as defined in the 1940
Act) of the Fund, have ratified the appointment of PwC as the Fund's independent
auditors for that fiscal year. Based principally on representations from the
Firm, the Fund knows of no direct financial or material indirect financial
interest of such Firm in the Fund. That Firm, or a predecessor firm, has served
as the independent auditors for the Fund since inception.
Neither our Charter nor Bylaws requires that the stockholders ratify the
appointment of PwC as our independent auditors. We are doing so because we
believe it is a matter of good corporate practice. If the stockholders do not
ratify the appointment, the Audit Committee and the Board of Directors will
reconsider whether or not to retain PwC, but may retain such independent
auditors. Even if the appointment is ratified, the Audit Committee and the Board
of Directors in their discretion may change the appointment at any time during
the year if they determine that such change would be in the best interests of
the Fund and its stockholders. It is intended that the persons named in the
accompanying form of proxy will vote for PwC. A representative of PwC will be
present at the Meeting and will have the opportunity to make a statement and is
expected to be available to answer appropriate questions concerning the Fund's
financial statements.
THE BOARD UNANIMOUSLY RECOMMENDS A VOTE FOR PROPOSAL 2.
Required Vote. Provided a quorum has been established, the affirmative
vote of a majority of the votes cast at the Meeting is required for the
ratification of the appointment by the Audit Committee and the Board of
Directors of PwC as independent auditors for the Fund for the fiscal year ending
December 31, 2005. For purposes of Proposal 2, abstentions will have no effect
on the result of the vote.
INFORMATION WITH RESPECT TO THE FUND'S INDEPENDENT AUDITORS
The following table shows fees paid to PwC by the Fund during the Fund's
two most recent fiscal years: (i) for audit and non-audit services provided to
the Fund, and (ii) for engagements for non-audit services pre-approved by the
Audit Committee for the Fund's manager and investment adviser and certain
entities controlling, controlled by, or under common control with the manager
and investment adviser that provide ongoing services to the Fund (collectively,
the "Adviser Entities"), which engagements relate directly to the operations and
financial reporting of the Fund. The Audit Committee of each Board will review,
at least annually, whether PwC's receipt of non-audit fees from the Fund, the
Fund's manager, the Fund's investment adviser and all Adviser Entities is
compatible with maintaining PwC's independence.
AUDIT FEES(1) AUDIT RELATED FEES(2) TAX FEES(3) ALL OTHER FEES(4)
------------- --------------------- ------------------- -------------------
ADVISER ADVISER ADVISER
FUND FUND ENTITIES FUND ENTITIES FUND ENTITIES
------- ------ -------- ------ -------- ------ --------
2004 ................... $54,900 -- $431,907 $6,700 -- $6,500 --
2003 ................... $51,164 -- $538,457 $9,267 -- $6,715 --
----------
(1) "Audit Fees" are the aggregate fees billed for professional services for
the audit of the Fund's annual financial statements and services provided
in connection with statutory and regulatory filings or engagements.
(2) "Audit Related Fees" are the aggregate fees billed for assurance and
related services reasonably related to the performance of the audit or
review of financial statements and are not reported under "Audit Fees."
(3) "Tax Fees" are the aggregate fees billed for professional services for tax
advice, tax compliance and tax planning.
(4) "All Other Fees" are the aggregate fees billed for products and services
other than "Audit Fees," "Audit Related Fees" and "Tax Fees."
11
Audit Committee Pre-Approval Policies and Procedures. Generally, the Audit
Committee must pre-approve (i) all services to be performed for the Fund by the
Fund's independent auditors and (ii) all non-audit services to be performed by
the Fund's independent auditors for the Fund's investment adviser or any Adviser
Entities with respect to operations and financial reporting of the Fund. The
Chair of the Audit Committee may approve or deny the request to engage the
auditors to provide any fund services or fund-related services that are not
listed on the pre-approved list if the cost associated with the request is
$50,000 or less, or at the Chair's discretion, determine to call a special
meeting of the Audit Committee for the purpose of considering the proposal.
Should the Chair of the Audit Committee be unavailable, any other member of the
Audit Committee may serve as an alternate for the purpose of approving or
denying the request. The auditors shall report to the Audit Committee at each of
its regular meetings all audit or non-audit services to the Fund and all
non-audit services to the Adviser Entities that relate directly to the Fund's
operations and financial reporting initiated since the last such report was
rendered, including a general description of the services and projected fees and
the means by which such services were approved by the Audit Committee. The
engagement of the auditors to provide certain services customarily required by
the Fund in the ordinary course of its operation or by an Adviser Entity in the
ordinary course of its operation is approved by the Audit Committee subject to
pre-determined dollar limits. In all cases where an Adviser Entity engages the
auditors to provide audit or non-audit services not relating to Fund operations
or financial reporting, and the projected fees for such engagement exceed
$25,000, the auditors will notify the Audit Committee not later than their next
meeting.
All Non-Audit Fees. The table below shows the aggregate non-audit fees
billed by PwC for services rendered to the Fund and to the Advisor Entities that
provide ongoing services to the Fund, whether or not such engagements relate
directly to the operations and financial reporting of the Fund, for the two most
recent fiscal years for the Fund.
FISCAL YEAR AGGREGATE NON-AUDIT FEES
----------- ------------------------
2004 $ 266,472
2003 $3,982,982
AUDIT COMMITTEE REPORT
The purposes of the Audit Committee are 1) to assist the Board of
Directors in its oversight of (i) the integrity of the Fund's financial
statements; (ii) the Fund's compliance with legal and regulatory requirements;
(iii) the independent auditors' qualifications and independence; and (iv) the
performance of the independent auditors; and 2) to prepare this report. Each
member of the Audit Committee is "independent," as required by the independence
standards of Rule 10A-3 under the Securities Exchange Act of 1934. The Audit
Committee operates pursuant to a written charter. As set forth in the Audit
Committee Charter, management of the Fund and applicable service providers are
responsible for the preparation, presentation and integrity of the Fund's
financial statements and for the effectiveness of internal control over
financial reporting. Management and applicable service providers are responsible
for maintaining appropriate accounting and financial reporting principles and
policies and internal control over financial reporting and other procedures that
provide for compliance with accounting standards and applicable laws and
regulations. The independent auditors are responsible for planning and carrying
out a proper audit of the Fund's annual financial statements and expressing an
opinion as to their conformity with generally accepted accounting principles.
12
In the performance of its oversight function, the Audit Committee has
considered and discussed the audited financial statements with Management and
the independent auditors of the Fund. The Audit Committee has also discussed
with the independent auditors the matters required to be discussed by Statement
on Auditing Standards No. 61, Communication with Audit Committees, as currently
in effect. The Audit Committee has also considered whether the provision of any
non-audit services not pre-approved by the Audit Committee provided by the
Fund's independent auditors to the Fund's investment adviser, manager or to any
entity controlling, controlled by or under common control with the Fund's
investment adviser or manager that provides ongoing services to the Fund is
compatible with maintaining the auditors' independence. Finally, the Audit
Committee has received the written disclosures and the letter from the
independent auditors required by Independence Standards Board Standard No. 1,
Independence Discussions with Audit Committees, as currently in effect, and has
discussed with the auditors their independence.
The members of the Audit Committee are not full-time employees of the Fund
and are not performing the functions of auditors or accountants. As such, it is
not the duty or responsibility of the Audit Committee or its members to conduct
"field work" or other types of auditing or accounting reviews or procedures or
to set auditor independence standards. Members of the Audit Committee
necessarily rely on the information provided to them by management and the
independent auditors. Accordingly, the Audit Committee's considerations and
discussions referred to above do not assure that the audit of the Fund's
financial statements has been carried out in accordance with generally accepted
auditing standards, that the financial statements are presented in accordance
with generally accepted accounting principles or that the Fund's auditors are in
fact "independent."
Based upon the reports and discussions described in this report, and
subject to the limitations on the role and responsibilities of the Audit
Committee referred to above and in the Charter, the Audit Committee recommended
to the Board of Directors of the Fund that the audited financial statements of
the Fund be included in the Fund's annual report to stockholders for the fiscal
year ended December 31, 2004.
Submitted by the Audit Committee
of the Fund's Board of Directors
Ambassador Richard R. Burt
John H. Cannon
Robert H. Wadsworth
Werner Walbrol
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS
As of May 13, 2005 no person, to the knowledge of management, owned of
record or beneficially more than 5% of the outstanding Common Stock of the Fund,
other than as set forth below:
Name and Address Amount and Nature Percent of
of Beneficial Owner of Beneficial Ownership Outstanding Common Stock
------------------- ----------------------- ------------------------
Wachovia Corp.(1) 986,130 6.15%
One Wachovia Center
Charlotte, NC 28288-0137
----------
(1) This information is based exclusively on information provided by such
entity on Schedule 13G filed with respect to the Fund on February 14,
2005.
13
ADDRESS OF INVESTMENT ADVISER AND MANAGER
The principal office of Deutsche Asset Management International GmbH, the
Fund's investment adviser, is located at Mainzer Landstrasse 178-190, D-60327
Frankfurt am Main, Federal Republic of Germany. The corporate office of Deutsche
Investment Management Americas Inc., the Fund's manager, is located at 345 Park
Avenue, New York, New York 10154.
SECTION 16(a) BENEFICIAL OWNERSHIP
REPORTING COMPLIANCE
Based on a review of reports filed by the Fund's directors and executive
officers, the investment manager, officers and directors of the investment
manager, affiliated persons of the investment manager and beneficial holders of
10% or more of the Fund's outstanding stock, and written representations by the
Reporting Persons that no year-end reports were required for such persons, all
filings required by Section 16(a) of the Securities and Exchange Act of 1934 for
the fiscal year ended December 31, 2004 were timely, except that Vincent J.
Esposito and Sandra-Maria Schaufler each filed a Form 3 late. Each person has
since corrected his/her omission by making the necessary filing.
OTHER MATTERS
No business other than as set forth herein is expected to come before the
Meeting, but should any other matter requiring a vote of stockholders properly
come before the Meeting, including any question as to an adjournment of the
Meeting, the persons named in the enclosed Proxy Card will vote thereon
according to their discretion. Abstentions and broker non-votes shall have no
effect on the outcome of a vote to adjourn the Meeting.
STOCKHOLDER PROPOSALS
In order for stockholder proposals otherwise satisfying the eligibility
requirements of SEC Rule 14a-8 to be considered for inclusion in the Fund's
proxy statement for the 2006 Annual Meeting, the proposals must be received at
The Germany Fund, Inc., c/o Deutsche Asset Management, 345 Park Avenue,
NYC20-2799, New York, New York, 10154, Attention: Secretary, on or before
January 18, 2006.
In addition, the Fund's Bylaws currently provide that if a stockholder
desires to bring business (including director nominations) before the 2006
Annual Meeting that is or is not the subject of a proposal timely submitted for
inclusion in the Fund's proxy statement, written notice of such business as
prescribed in the Bylaws must be delivered to the Fund's Secretary, at the
principal executive offices of the Fund, between January 18, 2006 and February
17, 2006. For additional requirements, the stockholder may refer to the Bylaws,
a current copy of which may be obtained without charge upon request from the
Fund's Secretary. If the Fund does not receive timely notice pursuant to the
Bylaws, the proposal may be excluded from consideration at the meeting,
regardless of any earlier notice provided in accordance with SEC Rule 14a-8.
14
EXPENSES OF PROXY SOLICITATION
The cost of preparing, assembling and mailing material in connection with
this solicitation will be borne by the Fund. In addition to the use of mails,
proxies may be solicited personally by regular employees of the Fund or the
manager or by telephone or telegraph. Brokerage houses, banks and other
fiduciaries may be requested to forward proxy solicitation materials to their
principals to obtain authorization for the execution of proxies, and they will
be reimbursed by the Fund for out-of-pocket expenses incurred in this
connection. The Fund has also made arrangements with Georegeson Shareholder
Communications Inc. to assist in the solicitation of proxies, if called upon by
the Fund, at an estimated fee of $9,500 plus reimbursement of normal expenses.
ANNUAL REPORT DELIVERY
The Fund will furnish, without charge, a copy of its annual report for the
fiscal year ended December 31, 2004 and the most recent semi-annual report, if
any, to any stockholder upon request. Such requests should be directed by mail
to The Germany Fund, Inc., c/o Deutsche Asset Management, 345 Park Avenue,
NYC20-2799, New York, New York 10154 or by telephone to 1-800-437-6269. Annual
reports are also available on the Fund's web site: www.germanyfund.com.
Bruce A. Rosenblum
Secretary
Dated: May 18, 2005
STOCKHOLDERS WHO DO NOT EXPECT TO BE PRESENT AT THE MEETING AND WHO WISH
TO HAVE THEIR SHARES VOTED ARE REQUESTED TO DATE AND SIGN THE ENCLOSED PROXY
CARD AND RETURN IT TO THE FUND.
15
ANNEX A
THE GERMANY FUND, INC.
(THE "COMPANY")
NOMINATING COMMITTEE CHARTER
ADOPTED AS OF APRIL 23, 2004
The Board of Directors (the "Board") of the Fund has adopted this Charter
to govern the activities of the Nominating Committee (the "Committee") of the
Board.
STATEMENT OF PURPOSES AND RESPONSIBILITIES
The primary purposes and responsibilities of the Committee are:
(i) to identify individuals qualified to become members of the Board in
the event that a position is vacated or created;
(ii) to consider all candidates proposed to become members of the Board,
subject to applicable law, the Fund's Articles of Incorporation or
By-laws, resolutions of the Board and the procedures and policies
set forth in this Charter and the Fund's annual proxy statement;
(iii) to select and nominate, or recommend for nomination by the Board,
candidates for election as Directors;
(iv) in the case of a director nominee to fill a Board vacancy created by
an increase in the size of the Board, to make a recommendation to
the Board as to the class of directors in which the individual
should serve;
(v) to make recommendations to the Board from time to time as to any
changes that the Committee believes to be desirable to the
provisions of the Fund's By-laws regarding minimum standards and
qualifications for service as a Director on the Board or to any
charter of committees of the Board regarding minimum standards and
qualifications for service as a committee member, and to recommend
to the Board, or to set, any additional standards or qualifications
considered necessary or desirable for service as a Director on the
Board or as a member of a committee of the Board;
(vi) to identify Board members qualified to fill vacancies on any
committee of the Board, taking into account any qualifications or
other criteria set forth in the charter of that committee, and to
recommend that the Board appoint the identified member or members to
that committee;
(vii) to make recommendations to the Board from time to time as to changes
that the Committee believes to be desirable to the size of the Board
or any committee thereof;
(viii)to review with counsel, at least annually, each Director's
affiliations and relationships for purposes of determining whether
such Director is a person who is not an "interested person" of the
Fund, as defined in Section 2(a)(19) of the Investment Company Act
of 1940, as amended.
(ix) to assist management in the preparation of the disclosure in the
Fund's annual proxy statement regarding the operations of the
Committee; and
(x) to perform any other duties or responsibilities expressly delegated
to the Committee by the Board from time to time relating to the
nomination of Board or committee members.
A-1
ORGANIZATION AND GOVERNANCE
The Committee shall consist solely of three or more members of the Board.
The Committee must consist entirely of Board members who are not "interested
persons" of the Fund, as defined in Section 2(a)(19) of the Investment Company
Act of 1940, as amended ("Independent Directors"). Members shall serve at the
pleasure of the Board and for such term or terms as the Board may determine.
One or more members of the Committee may be designated by the Board as the
Committee's chairperson or co-chairperson, as the case may be.
The Committee shall meet at least once a year at a time and place
determined by the Committee chairperson, with further meetings to occur, or
actions to be taken by unanimous written consent, when deemed necessary or
desirable by the Committee or its chairperson. Members of the Committee may
participate in a meeting of the Committee by means of conference call or similar
communications equipment by means of which all persons participating in the
meeting can hear each other. Committee meetings shall be held in accordance with
the Fund's By-laws.
CRITERIA FOR DIRECTOR NOMINEES
To be eligible for nomination as a Director a person must, at the time of
such person's nomination, have Relevant Experience and Country Knowledge, as
defined in the Fund's By-laws, and must not have any Conflict of Interest, as
defined in the Fund's By-laws. Whether a proposed nominee satisfies the
foregoing qualifications shall be determined by the Committee in its sole
discretion. The Committee may also take into account a wide variety of factors
in considering Director candidates, including (but not limited to): (i) the
candidate's knowledge in matters relating to the investment company industry;
(ii) any experience possessed by the candidate as a director or senior officer
of other public or private companies; (iii) the candidate's educational
background; (iv) the candidate's reputation for high ethical standards and
personal and professional integrity; (v) any specific financial, technical or
other expertise possessed by the candidate, and the extent to which such
expertise would complement the Board's existing mix of skills and
qualifications; (vi) the candidate's perceived ability to contribute to the
ongoing functions of the Board, including the candidate's ability and commitment
to attend meetings regularly, work collaboratively with other members of the
Board and carry out his or her duties in the best interests of the Fund; (vii)
the candidate's ability to qualify as an Independent Director; and (viii) such
other criteria as the Nominating Committee determines to be relevant in light of
the existing composition of the Board and any anticipated vacancies or other
factors.
IDENTIFICATION OF NOMINEES
In identifying potential nominees for the Board, the Committee may
consider candidates recommended by one or more of the following sources: (i) the
Fund's Directors, (ii) the Fund's officers, (ii) the Fund's investment manager,
investment adviser or their affiliates, (iv) the Fund's stockholders (see below)
and (v) any other source the Committee deems to be appropriate. The Committee
will not consider self-nominated candidates or candidates nominated by members
of a candidate's family, including such candidate's spouse, children, parents,
siblings, uncles, aunts, grandparents, nieces and nephews. The Committee may,
but is not required to, retain a third party search firm at the Fund's expense
to identify potential candidates.
A-2
CONSIDERATION OF CANDIDATES RECOMMENDED BY STOCKHOLDERS
The Committee will consider nominee candidates properly submitted by
stockholders in accordance with applicable law, the Fund's Articles of
Incorporation or By-laws, resolutions of the Board and the qualifications and
procedures set forth in this Charter and the Fund's annual proxy statement,
including the requirements that a stockholder or group of stockholders seeking
to submit a nominee candidate (i) must have beneficially owned at least 5% of
the Fund's common stock for at least two years, (ii) may submit only one nominee
candidate for any particular meeting of stockholders, and (iii) may submit a
nominee candidate for only an annual meeting or other meeting of stockholders at
which directors will be elected. The Committee will evaluate nominee candidates
properly submitted by stockholders on the same basis as it considers and
evaluates candidates recommended by other sources.
DELEGATION TO SUBCOMMITTEE
The Committee may, in its discretion, delegate all or a portion of its
duties and responsibilities to a subcommittee of the Committee.
RESOURCES AND AUTHORITY OF THE COMMITTEE
The Committee shall have the resources and authority appropriate to
discharge its duties and responsibilities, including the authority to select,
retain, terminate and approve the fees and other retention terms of special
counsel or other experts or consultants, as it deems appropriate, without
seeking approval of the Board or management. With respect to consultants or
search firms used to identify director candidates, this authority shall be
vested solely in the Committee.
A-3
ANNEX B
THE GERMANY FUND, INC.
EXCERPTS OF BY-LAWS
ARTICLE II
Section 13. Advance Notice of Stockholder Nominees for Director and Other
Stockholder Proposals. (a) Annual Meetings of Stockholders. (1) Nominations of
persons for election to the Board of Directors and the proposal of business to
be considered by the stockholders may be made at an annual meeting of
stockholders (i) pursuant to the Corporation's notice of meeting, (ii) by or at
the direction of the Board of Directors or (iii) by any stockholder of the
Corporation who was a stockholder of record both at the time of giving of notice
provided for in this Section 13(a) and at the time of the annual meeting, who is
entitled to vote at the meeting and who complied with the notice procedures set
forth in this Section 13(a).
(2) For nominations or other business to be properly brought
before an annual meeting by a stockholder pursuant to clause (iii)
of paragraph (a)(1) of this Section 13, the stockholder must have
given timely notice thereof in writing to the Secretary of the
Corporation and such other business must otherwise be a proper
matter for action by the stockholders. To be timely, a stockholder's
notice shall be delivered to the Secretary at the principal
executive offices of the Corporation not less than 90 days nor more
than 120 days prior to the first anniversary of the date of mailing
of the notice for the preceding year's annual meeting; provided,
however, that in the event that the date of mailing of the notice
for the annual meeting is advanced or delayed by more than 30 days
from the first anniversary of the date of mailing of the notice for
the preceding year's annual meeting, notice by the stockholder to be
timely must be so delivered not earlier than the 120th day prior to
the date of mailing of the notice for such annual meeting and not
later than the close of business on the later of the 90th day prior
to the date of mailing of the notice for such annual meeting or the
tenth day following the day on which disclosure of the date of
mailing of the notice for such meeting is first made. In no event
shall the public announcement of a postponement or adjournment of an
annual meeting commence a new time period for the giving of a
stockholder's notice as described above. Such stockholder's notice
shall set forth (i) as to each person whom the stockholder proposes
to nominate for election or reelection as a director, (A) the name,
age, business address and residence address of such person, (B) the
class and number of shares of stock of the Corporation that are
beneficially owned by such person, (C) all other information
relating to such person that is required to be disclosed in
solicitations of proxies for election of directors in an election
contest (even if an election contest is not involved), or is
otherwise required, in each case pursuant to Regulation 14A (or any
successor provision) under the Exchange Act or pursuant to the
Investment Company Act and the rules thereunder (including such
person's written consent to being named in the proxy statement as a
nominee and to serving as a director if elected), and (D) a
statement specifying which of clauses (1)-(7) of the definition of
"Relevant Experience and Country Knowledge" in Article III, Section
3 of the Bylaws the person being nominated satisfies, information
relating to such person sufficient to support a determination that
the person satisfies the specified clause or clauses of the
definition and a representation that the person does not have a
"Conflict of Interest" as defined in Article III, Section 3 of the
Bylaws; (ii) as to any other business that the stockholder proposes
to bring before the meeting, a description of the business desired
to be brought before the meeting, the reasons for conducting such
business at the meeting and any material interest in such business
of such stockholder (including any anticipated benefit to the
stockholder therefrom) and of each beneficial owner, if any, on
whose behalf
B-1
the proposal is made; and (iii) as to the stockholder giving the
notice and each beneficial owner, if any, on whose behalf the
nomination or proposal is made, (x) the name and address of such
stockholder, as they appear on the Corporation's stock ledgers and a
current name and address, if different, and of such beneficial
owner, and (y) the class and number of shares of each class of stock
of the Corporation which are owned beneficially and of record by
such stockholder and owned beneficially by such beneficial owner.
(3) Notwithstanding anything in this subsection (a) of this
Section 13 to the contrary, in the event the Board of Directors
increases or decreases the maximum or minimum number of directors in
accordance with Article III, Section 2 of these Bylaws, and there is
no public announcement of such action at least 100 days prior to the
first anniversary of the date of mailing of the preceding year's
annual meeting, a stockholder's notice required by this Section
13(a) shall also be considered timely, but only with respect to
nominees for any new positions created by such increase, if it shall
be delivered to the Secretary at the principal executive offices of
the Corporation not later than the close of business on the tenth
day following the day on which such public announcement is first
made by the Corporation.
(b) Special Meetings of Stockholders. Only such business shall be
conducted at a special meeting of stockholders as shall have been brought
before the meeting pursuant to the Corporation's notice of meeting.
Nominations of persons for election to the Board of Directors may be made
at a special meeting of stockholders at which directors are to be elected
(i) pursuant to the Corporation's notice of meeting, (ii) by or at the
direction of the Board of Directors or (iii) provided that the Board of
Directors has determined that directors shall be elected at such special
meeting, by any stockholder of the Corporation who is a stockholder of
record both at the time of giving of notice provided for in this Section
13 and at the time of the special meeting, who is entitled to vote at the
meeting and who complied with the notice procedures set forth in this
Section 13. In the event the Corporation calls a special meeting of
stockholders for the purpose of electing one or more directors to the
Board of Directors, any such stockholder may nominate a person or persons
(as the case may be) for election as a director as specified in the
Corporation's notice of meeting, if the stockholder's notice required by
paragraph (a)(2) of this Section 13 shall be delivered to the Secretary at
the principal executive offices of the Corporation not earlier than the
120th day prior to such special meeting and not later than the close of
business on the later of the 90th day prior to such special meeting or the
tenth day following the day on which public announcement is first made of
the date of the special meeting and of the nominees proposed by the Board
of Directors to be elected at such meeting. In no event shall the public
announcement of a postponement or adjournment of a special meeting
commence a new time period for the giving of a stockholder's notice as
described above.
(c) General. (1) Only such persons who are nominated in accordance
with the procedures set forth in this Section 13 and Article III, Section
3 of these Bylaws shall be eligible to serve as directors and only such
business shall be conducted at a meeting of stockholders as shall have
been brought before the meeting in accordance with the procedures set
forth in this Section 13. The chairman of the meeting shall have the power
and duty to determine whether a nomination or any business proposed to be
brought before the meeting was made or proposed, as the case may be, in
accordance with the procedures set forth in this Section 13 and, if any
proposed nomination or business is not in compliance with this Section 13,
to declare that such defective nomination or proposal be disregarded.
B-2
(2) For purposes of this Section 13, (a) the "date of mailing
of the notice" shall mean the date of the proxy statement for the
solicitation of proxies for election of directors and (b) "public
announcement" shall mean disclosure (i) in a press release reported
by the Dow Jones News Service, Associated Press or comparable news
service or (ii) in a document publicly filed by the Corporation with
the Securities and Exchange Commission pursuant to the Exchange Act
or the Investment Company Act.
(3) Notwithstanding the foregoing provisions of this Section
13, a stockholder shall also comply with all applicable requirements
of state law and of the Exchange Act and the Investment Company Act
and the rules and regulations thereunder with respect to the matters
set forth in this Section 13. Nothing in this Section 13 shall be
deemed to affect any right of stockholders to request inclusion of
proposals in, nor the right of the Corporation to omit a proposal
from, the Corporation's proxy statement pursuant to Rule 14a-8 (or
any successor provision) under the Exchange Act.
ARTICLE III
Section 3. Qualifications. Directors need not be stockholders. Each
Director shall hold office until the earlier of: (a) the expiration of his term
and his or her successor shall have been elected and qualifies, (b) his or her
death, (c) his or her resignation, or (d) his or her removal. To be eligible for
nomination as a director a person must, at the time of such person's nomination
by the Board of Directors, (a) have Relevant Experience and Country Knowledge
(as defined below), (b) not have any Conflict of Interest (as defined below) and
(c) not be of an age such that he will attain the age of over 70 years in the
calendar year in which his or her term will end; provided that clause (c) shall
not apply to any person who was a Director on October 15, 1999 or to any person
whom the Nominating Committee (or in the absence of such a Committee, the Board
of Directors) determines to except from that clause on the basis that the
person's prior public or government service or other broad-based activities in
the business community make it essential that the Corporation continue to
receive the benefit of the person's services as a Director. The determination
described in the previous sentence shall be made on or before the time of
nomination. Whether a proposed nominee satisfies the foregoing qualifications
shall be determined by the Nominating Committee or, in the absence of such a
Committee, by the Board of Directors, each in its sole discretion.
"Relevant Experience and Country Knowledge" means experience in business,
investment, economic or political matters of Germany or the United States
through service for 10 of the past 20 years (except where a shorter period is
noted) in one or more of the following principal occupations:
(1) senior executive officer or partner of a financial or industrial
business headquartered in Germany that has annual revenues of at
least the equivalent of US $500 million,
(2) senior executive officer or partner of a financial or industrial
business headquartered in the United States that has annual revenues
of at least the equivalent of US $500 million and whose management
responsibilities include supervision of European business
operations,
(3) director (or the equivalent) for 5 of the past 10 years of one or
more investment businesses or vehicles (including this Corporation)
a principal focus of which is investment in Germany and that have at
least the equivalent of US $250 million in combined total assets of
their own,
(4) senior executive officer or partner of an investment management
business having at least the equivalent of US $500 million in
securities of German companies or securities principally traded in
Germany under discretionary management for others,
B-3
(5) senior executive officer or partner (a) of a business consulting,
accounting or law firm having at least 100 professionals and (b)
whose principal responsibility involves or involved providing
services involving European matters for financial or industrial
businesses, investment businesses or vehicles or investment
management businesses as described in (1)-(4) above,
(6) senior official (including ambassador or minister) in the national
government, a government agency or the central bank of Germany or
the United States, in a major supranational agency or organization
of which Germany or the United States is a member, or in a leading
international trade organization relating to Germany or the United
States, in each case in the area of finance, economics, trade or
foreign relations, or
(7) current director or senior officer (without regard to years of
service) of an investment manager or adviser of the Corporation, or
of any entity controlling or under common control with an investment
manager or adviser of the Corporation.
For purposes of clauses (1)-(5) of the preceding sentence and clauses (1)-(2) of
the next paragraph, the term "financial or industrial business" includes a
financial or industrial business unit within a larger enterprise; the term
"investment businesses or vehicles" includes an investment business unit or
investment vehicle within a larger enterprise; the term "investment management
business" includes an investment management business unit within a larger
enterprise; and the term "investment vehicle" includes an investment vehicle
within a larger enterprise; but in each case only to the extent the unit
satisfies the revenue, asset and other requirements specified for the business
or vehicle in clauses (1)-(5) of the preceding sentence or clauses (1)-(2) of
the next paragraph.
"Conflict of Interest" means the presence of a conflict with the interests
of the Corporation or its operations through any of the following:
(1) current position as a director, officer, partner or employee of
another investment vehicle a significant (i.e., 25% or more of total
assets) focus of which is securities of German companies or
securities principally traded in German markets and that does not
have the same investment adviser as the Corporation or an investment
adviser affiliated with an investment adviser of the Corporation,
(2) current position as a director, officer, partner or employee of the
sponsor or equivalent of an investment vehicle described in the
previous point, or
(3) current position as an official of a governmental agency or
self-regulatory body having responsibility for regulating the
Corporation or the markets in which it proposes to invest.
B-4
[FLAG LOGO]
PROXY
THE GERMANY FUND, INC.
THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS.
The undersigned stockholder of The Germany Fund, Inc., a Maryland
corporation (the "Fund"), hereby appoints Julian Sluyters, Bruce A. Rosenblum
and Patricia Rosch Carrington, or any of them, as proxies for the undersigned,
with full power of substitution in each of them, to attend the Annual Meeting of
the Stockholders of the Fund to be held at 10:00 A.M., New York time, on June
21, 2005 at the offices of Deutsche Bank, 345 Park Avenue, New York, New York
10154, and any adjournment or postponement thereof, to cast on behalf of the
undersigned all votes that the undersigned is entitled to cast at such meeting
and otherwise to represent the undersigned at the meeting with all powers
possessed by the undersigned if personally present at the meeting. The
undersigned hereby acknowledges receipt of the Notice of the Annual Meeting of
Stockholders and of the accompanying Proxy Statement, the terms of each of which
are incorporated by reference herein, and revokes any proxy heretofore given
with respect to such meeting.
THE VOTES ENTITLED TO BE CAST BY THE UNDERSIGNED WILL BE CAST AS
INSTRUCTED BELOW. IF THIS PROXY CARD IS EXECUTED BUT NO INSTRUCTION IS GIVEN,
THE VOTES ENTITLED TO BE CAST BY THE UNDERSIGNED WILL BE CAST "FOR" EACH OF THE
NOMINEES FOR DIRECTOR AND "FOR" PROPOSAL 2, AS DESCRIBED IN THE PROXY STATEMENT
AND IN THE DISCRETION OF THE PROXY HOLDER ON ANY OTHER MATTER THAT MAY PROPERLY
COME BEFORE THE MEETING OR ANY ADJOURNMENT OR POSTPONEMENT THEREOF.
THE BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS A VOTE "FOR" THE NOMINEES
1. FOR each of the WITHHOLD AUTHORITY FOR all nominees
nominees for director as to all listed except as marked to
listed below. |_| nominees. |_| the contrary below.
(INSTRUCTIONS: To withhold authority for any individual nominee, strike a line
through the nominee's name in the list below.)
Mr. Fred H. Langhammer
Mr. Christian Strenger
Mr. Werner Walbrol
THE BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS A VOTE "FOR" PROPOSAL 2
2. To ratify the appointment by the Audit Committee and the Board of Directors
of PricewaterhouseCoopers LLP as independent auditors for the fiscal year
ending December 31, 2005.
FOR |_| AGAINST |_| ABSTAIN |_|
3. To vote and otherwise represent the undersigned on any other matter that may
properly come before the meeting or any adjournment or postponement thereof
in the discretion of the Proxy holder.
Please sign here exactly as name appears on the records of the Fund and
date. If the shares are held jointly, each holder should sign. When signing as
an attorney, executor, administrator, trustee, guardian, officer of a
corporation or other entity or in another representative capacity, please give
the full title under signature(s).
_________________________________
Signature
_________________________________
Signature, if held jointly
_________________________________
Dated: _______________, 2005