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document_number title type abstract publication_date pub_year pub_month html_url pdf_url agency_names agency_ids excerpts regulation_id_numbers
06-5493 Investment Company Governance Proposed Rule On April 7, 2006, a Federal appeals court invalidated certain amendments adopted by the Securities and Exchange Commission ("Commission") to rules under the Investment Company Act of 1940 ("Act"). The Court found that the Commission had failed to seek comment on the data used to estimate the costs of the amendments, but suspended issuing its mandate in order to give the Commission an opportunity to request further comment. Because the Court's decision called into question the regularity of our proceedings, the Commission now invites further comment on the amendments, including particularly their costs. The amendments, first proposed on January 15, 2004, would impose two conditions on investment companies ("funds") relying on certain exemptive rules. First, fund boards would have to be comprised of at least 75 percent independent directors. Second, the boards would have to be chaired by an independent director. In addition to the costs of the two conditions, commenters may address any issue related to the underlying purpose of the two conditions, which is the protection of funds and fund shareholders. As required by section 2(c) of the Investment Company Act, the Commission specifically seeks comment on whether the proposed rule amendments will promote efficiency, competition, and capital formation. 2006-06-19 2006 6 https://www.federalregister.gov/documents/2006/06/19/06-5493/investment-company-governance https://www.govinfo.gov/content/pkg/FR-2006-06-19/pdf/06-5493.pdf Securities and Exchange Commission 466 On April 7, 2006, a Federal appeals court invalidated certain amendments adopted by the Securities and Exchange Commission ("Commission") to rules under the Investment Company Act of 1940 ("Act"). The Court found that the Commission had failed to seek...  

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