Edgar Filing: TRI-CONTINENTAL CORP

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.
|_| Definitive proxy statement.
|X| Definitive additional materials.
|_| Soliciting material under Rule 14a-12.
|_| Confidential, for use of the Commission only (as permitted by Rule
14a-6(e)(2)).

TRI-CONTINENTAL CORPORATION
(Name of Registrant as Specified in Its Charter)

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(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:

The table below lists some of the registered management investment
companies that are closed-end funds that have one-third or lower quorum
requirements for stockholder meetings.

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Name of Closed-End Fund Source
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Pioneer High Income Trust Proxy Statement
Pioneer Municipal High Income Trust
Pioneer Municipal High Income Advantage Trust

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Taiwan Greater China Fund Amended and Restated Bylaws

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SunAmerica Focused Alpha Large-Cap Fund, Inc. Proxy Statement

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The Asia Pacific Fund, Inc. Form N-2
Amendment No. 21

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The Central Europe and Russia Fund, Inc. Amended and Restated Bylaws

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Energy Income and Growth Fund Joint Proxy Statement
First Trust Value Line(R) 100 Fund
First Trust /Fiduciary Asset Management Covered Call Fund
First Trust /Aberdeen Global Opportunity Income Fund
First Trust /FIDAC Mortgage Income Fund
First Trust Strategic High Income Fund

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The S&P 500(R)Protected Equity Fund, Inc. Merrill Lynch Funds
Muni Intermediate Duration Fund, Inc. Joint Proxy Statement
Muni New York Intermediate Duration Fund, Inc.
Debt Strategies Fund, Inc.
Diversified Income Strategies Portfolio, Inc.
Floating Rate Income Strategies Fund, Inc.
Floating Rate Income Strategies Fund II, Inc.
MuniHoldings Fund, Inc.
MuniHoldings Fund II, Inc.
MuniHoldings Insured Fund, Inc.
MuniHoldings New Jersey Insured Fund, Inc.
MuniHoldings New York Insured Fund, Inc.
Corporate High Yield Fund III, Inc.
Corporate High Yield Fund V, Inc.
Corporate High Yield Fund VI, Inc.
MuniHoldings Insured Fund II, Inc.
Capital And Income Strategies Fund, Inc.
Preferred Income Strategies Fund, Inc.
Preferred and Corporate Income Strategies Fund, Inc.
Enhanced Equity Yield Fund, Inc.
Enhanced Equity Yield & Premium Fund, Inc.
Enhanced Government Fund, Inc.
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The European Equity Fund, Inc. Amended and Restated Bylaws
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Federated Premier Intermediate Municipal Income Fund Proxy Statement
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Federated Premier Municipal Income Fund Proxy Statement
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Foxby Corp. Proxy Statement
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Intermediate Muni Fund, Inc. Proxy Statement
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The New Germany Fund, Inc. Amended and Restated Bylaws
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Putnam Premier Income Trust Proxy Statement
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Closed-End Investment
Companies
12th Annual Discount Review

Prepared by J. & W. Seligman & Co. Incorporated

March 2006

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IDC
INDEPENDENT DIRECTORS COUNCIL(TM)

The voice of mutual fund directors at the Investment Company Institute

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Director Oversight of
Multiple Funds

Independent Directors Council
Task Force Report
May 2005

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[LOGO] INVESTMENT
COMPANY
INSTITUTE(R)

1401 H Street, NW
Suite 1200
Washington, DC 20005

Communications from the Institute or the Independent Directors Council do not
constitute, and should not be considered a substitute for, legal advice.

Copyright (C) 2005 by the Investment Company Institute. All rights reserved. No
part of this publication may be reproduced, stored in a retrieval system, or
transmitted in any form by any means, electronic, mechanical, photocopying,
recording, or otherwise without the express written permission of ICI.

Table of Contents

Executive Summary

I. Introduction ........................................................ 1

II. Prevalent Fund and Board Structures ................................. 1

III. Efficiencies of Board Oversight of Multiple Funds ................... 3

A. Common Regulatory Structure .................................... 3

B. Common Personnel and Service Providers ......................... 4

C. Complex-Wide Oversight Mechanisms .............................. 5

D. Enhanced Board Influence ....................................... 6

IV. Strategies to Facilitate Oversight of Multiple Funds ................ 6

A. Organization and Composition of the Board ...................... 7

B. Frequency of Meetings .......................................... 7

C. Good Governance Practices ...................................... 7

D. Use of Committees .............................................. 8

E. Professional Assistance for the Board .......................... 8

F. Transferring Information Outside of Meetings ................... 8

V. Impact of Limiting the Number of Funds Overseen be Fund Directors ... 9

A. Further Inefficiencies and Increased Costs ..................... 10

B. Other Possible Negative Consequences ........................... 10

VI. Conclusion .......................................................... 11

APPENDEX A ................................................................. A-1

EXECUTIVE SUMMARY

o The unitary or cluster board structure, in which directors oversee all or
many of the funds in a complex, is prevalent in the industry and is
consistent with good governance.

o Neither Congress nor the Securities and Exchange Commission have found
that imposing an arbitrary limit on the number of funds a director may
oversee would be in the best interests of shareholders. Rather, the SEC
has required that boards evaluate their performance in this regard as part
of an annual self-assessment.

o Mutual funds within a fund family share the same investment adviser and
other key service providers and, as a result, significant efficiencies are
realized when a single or limited number of boards oversees all of the
funds.

o Independent directors control who serves as an independent director and
the amount of compensation for each director. Control of these processes
by independent directors is a critical factor in assuring director
independence.

o Oversight of significant assets enhances a board's knowledge and expertise
and its ability to influence fund management and key service providers
and, as a result, enhances the board's effectiveness in serving the
interests of shareholders.

o The tasks of a fund director involve a common regulatory structure, common
personnel and service providers and oversight mechanisms that are
complex-wide. These tasks contrast significantly with the role of a
corporate director that, in many cases, involves oversight of multiple
product lines, several business units, numerous business plans and
management teams, and diverse regulatory structures and compliance issues.

o Mutual fund boards have developed a number of techniques and strategies
that address the challenges inherent in the oversight of multiple funds
and that enable directors to meet their responsibilities to shareholders.

o Limiting the number of funds a director may oversee is not only
inefficient, it would result in significant additional management, service
provider and director costs to shareholders.

o Board annual assessments provide an opportunity for boards to periodically
evaluate their ability to continue to provide appropriate oversight to the
number of funds for which they are responsible. A board can take into
account a number of relevant factors, including the types of funds
involved, the support the board receives and the strategies the board uses
to manage its workload.