I understand the anger of someone who depends on the quarterly distributions. If you don't need the regular income, what Royce has done probably makes sense. It's kind of like them keeping all your distributions for a while so this money can be invested to earn more later. That is to say, they can't buy cheap stocks at a bargain unless they have the money (your distributions) to do so. Their gamble is that they can sell these stocks later at a good profit.
I know you are right. But, I own BBT which dropped their dividend 68%, I own PWE which dropped their dividend, & I own RVT which suspended their dividend. This is part of my retirement portfolio which is slowly turning to "shit". I am by no means desperate. I've got other things to fall back on. I really feel sorry for the people that are "hung out to dry".
The Board believes that this decision is in the best interests of the Common Stockholders. It will allow the Fund to retain assets, which Royce & Associates, LLC, the Fund’s investment adviser, deems crucial as it seeks to continue taking advantage of what it believes are excellent opportunities in the current small-cap marketplace. The Board also considered the potentially adverse tax consequences that could occur if this policy were to continue. In certain circumstances, returns of capital could be taxable for federal income tax purposes, and all or a portion of the Fund’s capital loss carryforwards from prior years could effectively be forfeited.