bullet  PRINT FUNDAMENTALS      bullet  CONTACT IDC      0  IDC HOME

Board Leadership

The SEC requires disclosure about a fund’s leadership structure—specifically, whether the board chair is an independent director and, if not, whether the board has a lead independent director (and what specific role the lead independent director plays in the leadership of the fund).

did you know
In 2004, the SEC adopted rule amendments focused on board governance, including requirements that fund boards be composed of at least 75 percent independent directors and chaired by an independent director. These requirements have not gone into effect pending further study as a result of the decision of the United States Court of Appeals for the District of Columbia circuit in U.S. Chamber of Commerce v. SEC. IDC/ICI studies show that 85 percent of boards are composed of at least 75 percent independent directors and nearly two-thirds of fund complexes have an independent board chair.

next