A substantial majority of mutual fund directors are independent members who are meeting without management and seeking advice from their own lawyers far more often than in the past, according to data to be released Thursday.
'The hard numbers support the fact that the board has been conscientious,' in acting as the shareholders' watchdog, said Marguerite Bateman, managing director of the Independent Directors Council, which is affiliated with the Investment Company Institute, the leading trade organization for the $8.7 trillion fund industry.
The ICI and Independent Directors Council study covers fund governance practices over the past ten years, based on surveys conducted every other year. Recent survey data cover about 1,500 directors at up to 8,000 funds. Although the funds and directors participating in the survey aren't constant, its sponsors say the results show a clear trend toward greater independence and greater reliance on experts outside the fund-management company.
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