EXHIBIT 99.1



PROCEDURES FOR SUBMISSION OF RECOMMENDATIONS BY SHAREHOLDERS

TO THE NOMINATIONS COMMITTEE OF

FOUNTAIN POWERBOAT INDUSTRIES, INC.



The Charter of the Corporate Governance Committee (which
serves as a Nominations Committee for the Board of Directors) provides that the Committee will consider candidates recommended by shareholders of the Company. The following procedures are intended to provide an orderly process by which shareholders
may submit recommendations to the Committee and to insure that recommendations are submitted in a manner that will permit the Committee to give them due and timely consideration in its evaluation process.



How to Submit Recommendations



Shareholders who desire to recommend candidates to the Committee for
selection as nominees for election as directors should do so in writing. Each recommendation should be sent to:



Corporate Governance Committee

Fountain
Powerboat Industries, Inc.

C/O Corporate Secretary

Post Office Drawer 457

Washington, North Carolina 27889



Information to be Submitted with Recommendations



Each recommendation should be accompanied by the following:



| |  | the full name, address and telephone number of the person making the recommendation, and an affirmation that the person making the recommendation is a shareholder of record of the
Company (or, if the person is a beneficial owner of shares held in street name but not a record holder, a statement from the record holder of the shares verifying the number of shares beneficially owned and which may be voted by the
person making the recommendation), and a statement as to whether the person making the recommendation has a good faith intention to continue to hold those shares through the date of the Companys next annual shareholders meeting;
|- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | the full name, address and telephone number of the candidate being recommended, and information regarding the candidates beneficial ownership of shares of the Companys
voting securities and any business or personal relationship between the candidate and the person making the recommendation;
|- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | a statement signed by the candidate that he or she is aware of and consents to being recommended to the Committee and will provide such information as it may request in connection
with its evaluation of candidates;
|- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | a description of the candidates current principal occupation, business or professional experience, previous employment history, educational background, and any particular
areas of expertise;
|- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | information regarding any business or personal relationships between the candidate and any of the Companys or its subsidiaries customers, suppliers, vendors,
competitors, directors or officers, affiliated companies, or other persons with any special interest regarding the Company or its affiliated companies, and any transactions between the candidate and the Company or any of its affiliated companies;
|- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



---

| |  | any information in addition to the above regarding the candidate that would be required to be included in the Companys proxy statement pursuant to the SECs Regulation
14A (including without limitation information regarding legal proceedings in which the candidate has been involved within the past five years);
|- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | an explanation of the value or benefit that the person making the recommendation believes that the candidate would provide to the Company as a director.
|- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------



Deadline for Submission of Recommendations



In order to be considered by the Committee in connection with its
recommendations of candidates to the Companys Board of Directors for selection as nominees for election at an annual meeting of the Companys shareholders, a shareholders recommendation must be received by the Committee not
later than the 120th day prior to the first anniversary of the date that the Companys proxy statement was first mailed to its shareholders in conjunction with the preceding years annual meeting.



Compliance with Procedures



Recommendations submitted by shareholders other than in accordance with the
above procedures will not be considered by the Committee.



Satisfaction
of Applicable Laws and Regulations



In addition to
other qualification requirements established by the Committee or Board of Directors from time to time, candidates recommended by shareholders must qualify to serve as directors of the Company and its subsidiaries under any applicable state and
federal laws and regulations in effect from time to time.



Evaluation of
Candidates Recommended by Shareholders



The Committee
will evaluate candiates recommended by shareholders in a manner similar to its evaluation of other candidates. The Committee will select candidates to be recommend to the Board of Directors each year based on its assessment of, among other things,
(1) candidates business, life and educational background and experience, leadership, independence, geographic location, and their other qualifications, attributes and potential contributions; (2) the past and future
contributions of the Companys then current directors, and the value of continuity, diversity and prior Board experience; (3) the existence of one or more vacancies on the Board; (4) the need for a director possessing
particular attributes or particular experience or expertise; (5) the role of directors in business development activities of the Companys subsidiaries; and (6) other factors that it considers relevant, including any
specific qualifications the Committee adopts from time to time.



Nominations at Annual Meeting



This
procedure applies to recommendations of candidates to the Committee and not to nominations intended to be made by shareholders at annual meetings of the Companys shareholders. Nominations at annual meetings may be subject to other conditions
and requirements established by the Company from time to time.



No
Contract



These procedures do not create a contract
between any shareholder and the Company, and the Company may amend the procedures at any time.