PLAN OF DISTRIBUTION
OF
SMALLCAP WORLD FUND, INC.
WHEREAS, SMALLCAP World Fund, Inc. (the "Fund") is a Maryland Corporation
which offers shares of common stock.
WHEREAS, American Funds Distributors, Inc. ("AFD") will serve as
distributor of the shares of common stock of the Fund, and the Fund and AFD are
parties to a principal underwriting agreement (the "Agreement");
WHEREAS, the purpose of this Plan of Distribution (the "Plan") is to
authorize the Fund to bear expenses of distribution of its shares, including
reimbursement of AFD for certain of its expenses incurred in connection with
the Fund;
WHEREAS, the Board of Directors of the Fund has determined that there is a
reasonable likelihood that this Plan will benefit the Fund and its
shareholders:
NOW, THEREFORE, the Fund adopts this Plan as follows:
1. The Fund may expend pursuant to this Plan amounts not to exceed 0.30
of 1% of the average net assets of the Fund per annum.
2. Subject to the limit in paragraph 1, the Fund shall pay, or reimburse
AFD for, amounts to finance any activity which is primarily intended to result
in the sale of shares of the Fund provided that the Board of Directors of the
Fund shall have approved categories of expenses for which payment or
reimbursement shall be made pursuant to this paragraph 2.
3. This Plan shall not take effect until it has been approved by vote of
a majority of the outstanding voting securities of the Fund (as defined in the
Investment Company Act of 1940 (the "1940 Act")) and by the Board of Directors
as provided in paragraph 4.
4. This Plan shall not take effect until it has been approved, together
with any related agreement, by votes of the majority of both (i) the Board of
Directors of the Fund and (ii) those Directors of the Fund who are not
"interested persons" of the Fund (as defined in the 1940 Act) and have no
direct or indirect financial interest in the operation of this Plan or any
agreement related to it (the "Independent Directors"), cast in person at a
meeting called for the purpose of voting on this Plan and/or such agreement.
5. At least quarterly, the Board of Directors shall be provided by any
person authorized to direct the disposition of monies paid or payable by the
Fund pursuant to this Plan or any related agreement, and the Board shall review
a written report of the amounts expended pursuant to the Plan and the purposes
for which such expenditures were made.
6. This Plan may be terminated as to the Fund at any time by vote of a
majority of the Independent Directors, or by vote of a majority of the
outstanding voting securities (as defined in the 1940 Act) of the Fund. Unless
sooner terminated in accordance with this provision, this Plan shall continue
in effect until April 19, 1991. It may thereafter be renewed from year to year
in the manner provided for in paragraph 4 hereof.
7. Any agreement related to this Plan shall be in writing, and shall
provide:
A. that such agreement may be terminated as to the Fund at any time,
without payment of any penalty, by vote of a majority of the Independent
Directors or by a vote of a majority of the outstanding voting securities (as
defined in the 1940 Act) of the Fund, on not more than sixty (60) days' written
notice to any other party to the agreement; and
B. that such agreement shall terminate automatically in the event of
its assignment.
8. This Plan may not be amended to increase materially the maximum amount
of fee or other distribution expenses provided for in paragraph 1 hereof with
respect to the Fund unless such amendment is approved by the voting securities
of the Fund in the manner provided in paragraph 3 hereof, and no material
amendment to this Plan shall be made unless approved in the manner provided for
in paragraph 4 hereof.
9. While this Plan is in effect, the selection and nomination of
Directors of the Fund who are not "interested persons" of the Fund (as defined
in the 1940 Act) shall be committed to the discretion of the Directors who are
not interested persons.
10. If the Fund shall at any time issue shares in more than one series,
this Plan may be adopted, amended, continued or renewed with respect to a
series as provided herein notwithstanding such adoption, amendment, continuance
or renewal has not been effected with respect to any one or more other series
of the Fund.
11. The Fund shall preserve copies of this Plan and any related agreement
and all reports made pursuant to paragraph 5 hereof for a period of not less
than six (6) years from the date of this Plan, or such agreement or reports, as
the case may be, the first two (2) years of which such records shall be stored
in an easily accessible place.
IN WITNESS WHEREOF, the Fund has caused this Plan to be executed by its
officers thereunto duly authorized, as of April 20, 1990.
SMALLCAP WORLD FUND, INC.
By
Xxxxxxx X. Xxxxxxxx, President
By
Xxxxxxx X. Xxxxx, Secretary
