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Duties Of The Independent Director In Open-End Mutual Funds, Michigan Law Review

Michigan Law Review

This Comment will analyze the role of independent directors in open-end mutual funds. It will consider the potential impact of recent decisions and statutory amendments and explore the possibilities of a more significant role for such directors. The discussion will focus on the following aspects of the directors' role: (1) the duty to review contractual arrangements between the fund and the external adviser; (2) the duty to serve as a "watchdog" over fund policy, brokerage allocation on portfolio transactions, and miscellaneous fund operations; and (3) the responsibilities upon the sale or merger of the investment adviser. In order to appreciate …