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Article: Mutual Fund Board Rule Thrown Back to SEC
- Article from:
- The Washington Post
- Article date:
- April 8, 2006
- Author:
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A 2004 rule requiring that mutual fund boards be independent was
thrown into limbo yesterday by a federal appellate court, which ruled
that the Securities and Exchange Commission must reexamine the basis
for its rulemaking.
The rule, which required that the chairman and at least three-
quarters of a mutual fund's directors to be independent of
management, was one of the most controversial regulations to emerge
from the mutual fund trading scandals, in which some funds were
managed to benefit a few rather than the majority of shareholders.
The litigation arm of the U.S. Chamber of Commerce, which has
fought a multi-front battle to roll back many of the corporate
accountability laws and ...