Prospect Floating Rate & Alternative Income Fund, Inc. 8-K

What Happened
Prospect Floating Rate & Alternative Income Fund, Inc. announced that its stockholders approved the Fifth Articles of Amendment and Restatement and the Company adopted Fifth Amended and Restated Bylaws to conform to the NASAA Omnibus Guidelines. The Special Meeting was held March 4, 2026 (record date Jan 13, 2026); the charter amendment became effective upon filing with Maryland on March 6, 2026. The company also entered into Second Amended and Restated Investment Advisory and Administration Agreements with Prospect Capital Management L.P. and Prospect Administration LLC on March 4, 2026 to effect immaterial changes requested by state securities regulators.

Key Details

• Stockholder vote: record date Jan 13, 2026 (9,203,906 shares eligible); final tally reported 7,247,115 votes in favor; no recorded votes against or abstentions.
• Effective date: Fifth Articles filed with Maryland on March 6, 2026 (effective immediately upon filing).
• Major governance changes: quorum for stockholder meetings raised from one-third to 50% of voting shares; authorized common stock divided into four classes; stockholders holding 10% may call meetings for voteable matters; holders of a majority of outstanding voting shares may remove directors without cause (no sponsor/adviser/board concurrence required).
• Bylaw changes: director elections now require the affirmative vote of a majority of outstanding shares entitled to vote (replacing plurality); amendments that adversely affect stockholder rights require concurrence of a majority of voting shares.

Why It Matters
These amendments strengthen shareholder governance rights and align the company’s charter and bylaws with NASAA guidance requested by state regulators. For investors, the changes increase shareholder influence over meetings, director elections and removals, and make procedural rules (quorum/voting standards) more favorable to broader shareholder approval thresholds. The amended advisory and administration agreements are described as immaterial adjustments to satisfy regulators and are not presented as creating new fees or material operational changes.