Memo #
17214
LETTER FROM MEMBERS OF CONGRESS TO SEC CHAIRMAN DONALDSON SUPPORTING MANDATORY INDEPENDENT CHAIR
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[17214]
March 15, 2004
TO: BOARD OF GOVERNORS No. 21-04
INVESTMENT COMPANY DIRECTORS No. 13-04
PRIMARY CONTACTS - MEMBER COMPLEX No. 26-04
RE: LETTER FROM MEMBERS OF CONGRESS TO SEC CHAIRMAN DONALDSON
SUPPORTING MANDATORY INDEPENDENT CHAIR
As you know, Congress and the Securities and Exchange Commission are considering
various mutual fund reform proposals. Some of these proposals, including the SEC’s proposed
package of fund governance reforms,1 would mandate that all mutual fund boards of directors
have an independent chair. The Institute has urged that the selection of a chair be left to the
discretion of each fund board, noting that such boards consist of a majority (and, in most cases,
a supermajority) of independent directors.2
On March 11, five members of Congress sent a letter to SEC Chairman Donaldson in
support of the SEC’s proposal to require that all fund boards have an independent chair. The
letter was signed by: Chairmen Michael G. Oxley (R-OH), Richard H. Baker (R-LA), and Peter
G. Fitzgerald (R-IL); and Senators Daniel K. Akaka (D-HI) and Carl Levin (D-MI).3 A copy of
the letter is attached.
Matthew P. Fink
President
Attachment (in .pdf format)
Note: Not all recipients receive the attachment. To obtain a copy of the attachment, please visit our members website
(http://members.ici.org) and search for memo 17214, or call the ICI Library at (202) 326-8304 and request the
attachment for memo 17214.
1 SEC Release No. IC-26323 (Jan. 15, 2004), available at http://www.sec.gov/rules/proposed/ic-26323.htm.
2 See Letter from Craig S. Tyle, General Counsel, Investment Company Institute to Jonathan G. Katz, Secretary,
Securities and Exchange Commission, dated Mar. 10, 2004.
3 Last month, twelve members of Congress sent a letter to Chairman Donaldson opposing a mandatory independent
chair requirement. See Institute Memorandum to Board of Governors No. 13-04, Investment Company Directors No.
8-04, and Primary Contacts – Member Complex No. 16-04 [17105], dated Feb. 13, 2004.