The Securities and Exchange Commission (SEC) is asking for additional comments regarding its controversial rule regarding the composition of mutual fund boards of directors. The rule, issued in 2004, requires that the chairmen of mutual fund boards, as well as 75% of a board’s directors, are to have no direct ties to the company that manages the fund’s assets. Last year, the National Chamber Litigation Center challenged the rule in court, claiming that the SEC considered materials on which the public was not given the opportunity to comment, and that the agency ignored a court’s instructions to consider a disclosure alternative to the independent chair provision.
SEC Wants Comments On Mutual Fund Director Rule
The Securities and Exchange Commission (SEC) is asking for additional comments regarding its controversial rule regarding the composition of mutual fund boards of directors. The rule, issued in 2004, requires that the chairmen of mutual fund boards, as well as