UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM N-PX

ANNUAL REPORT OF PROXY VOTING RECORD OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-06179

Flaherty & Crumrine Preferred Income Fund Incorporated
(Exact name of registrant as specified in charter)

301 E. Colorado Boulevard, Suite 720
Pasadena, CA 91101
(Address of principal executive offices) (Zip code)


Donald F. Crumrine
Flaherty & Crumrine Incorporated
301 E. Colorado Boulevard, Suite 720
Pasadena, CA 91101
(Name and address of agent for service)

Registrant's telephone number, including area code: 626-795-7300

Date of fiscal year end: November 30

Date of reporting period: July 1, 2011 – June 30, 2012

Form N-PX is to be used by a registered management investment company, other than a small business investment company registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than August 31 of each year, containing the registrant's proxy voting record for the most recent twelve-month period ended June 30, pursuant to section 30 of the Investment Company Act of 1940 and rule 30b1-4 thereunder (17 CFR 270.30b1-4). The Commission may use the information provided on Form N-PX in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-PX, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-PX unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.



PROXY VOTING RECORD

FOR PERIOD JULY 1, 2011 TO JUNE 30, 2012

REGISTRANT NAME: Flaherty & Crumrine Preferred Income Fund Incorporated
INVESTMENT
COMPANY ACT FILE NUMBER: 811 - 06179
REPORTING PERIOD:           07/01/2011 - 06/30/2012
REGISTRANT ADDRESS: 301 E. Colorado Boulevard, Suite 720, Pasadena, California 91101
NAME OF SERIES (AS APPLICABLE): __________________________________

Issuer of Portfolio Security Exchange
Ticker
Symbol
CUSIP # Shareholder
Meeting Date
Summary of Matter Voted On Who Proposed
Matter: Issuer /
Shareholder
Whether
Fund Cast
Vote on
Matter
Fund's Vote For or
Against Proposal,
or Abstain; For or
Withhold
Regarding Election
of Directors
Whether Vote
Was For or
Against
Management
AON CORP AON 037389AK9 5/18/2012 Advisory vote to approve executive compensation Issuer Yes For For
AON CORP AON 037389AK9 5/18/2012 Approve auditor Issuer Yes For For
AON CORP AON 037389AK9 5/18/2012 Approve director Issuer Yes For For
BANK OF AMERICA CORP BAC 060505559 5/9/2012 Advisory say on pay vote to approve executive compensation Issuer Yes For For
BANK OF AMERICA CORP BAC 060505559 5/9/2012 Approve auditor Issuer Yes For For
BANK OF AMERICA CORP BAC 060505559 5/9/2012 Approve directors Issuer Yes For For
BANK OF AMERICA CORP BAC 060505559 5/9/2012 Disclosure of government employment Security Holder Yes Against For
BANK OF AMERICA CORP BAC 060505559 5/9/2012 Grassroots and other lobbying Security Holder Yes Against For
BANK OF AMERICA CORP BAC 060505559 5/9/2012 Mortgage servicing operations Security Holder Yes Against For
BANK OF AMERICA CORP BAC 060505559 5/9/2012 Prohibition on political spending Security Holder Yes Against For
CIT Group Inc CIT 125581801 5/15/2012 Advisory vote to approve named executive officer compensation Issuer Yes For For
CIT Group Inc CIT 125581801 5/15/2012 Approve auditor Issuer Yes For For
CIT Group Inc CIT 125581801 5/15/2012 Approve directors Issuer Yes For For
Exelon Corporation EXC 30161N101 4/2/2012 Advisory vote to approve executive compensation Issuer Yes For For
Exelon Corporation EXC 30161N101 4/2/2012 Approve auditor Issuer Yes For For
Exelon Corporation EXC 30161N101 4/2/2012 Approve directors Issuer Yes For For
PPL Corporation PPL 69351T106 5/16/2012 Advisory vote to approve named executive officer compensation Issuer Yes For For
PPL Corporation PPL 69351T106 5/16/2012 Approve 2012 stock incentive plan Issuer Yes For For
PPL Corporation PPL 69351T106 5/16/2012 Approve auditor Issuer Yes For For
PPL Corporation PPL 69351T106 5/16/2012 Approve directors Issuer Yes For For
PPL Corporation PPL 69351T106 5/16/2012 Director election majority vote Security Holder Yes Against For



SIGNATURES

Pursuant to the requirements of the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Registrant Flaherty & Crumrine Preferred Income Fund Incorporated


By (Signature and Title)*      /s/ Donald F. Crumrine
     Donald F. Crumrine, Director, Chairman of the Board and Chief
     Executive Officer
     (principal executive officer)
   


Date                                     7/24/2012


*Print the name and title of each signing officer under his or her signature.