id	author	title	date	pages	extension	mime	words	sentence	flesch	summary	cache	txt
inlawrev-3803	Thielen Eckerle, Stephanie	Three Strikes You're Out: The Effect and Controversies of the SEC's Attempted Mandate for Greater Independence on Mutual Fund Boards	2007	28	.pdf	application/pdf	13926	916	59	'^ The monetary cost for replacing an affiliated director with an independent director is approximately $400,000 per mutual fund board for the first year, while the cost of changing the board composition to seventy-five percent independent is approximately $650,000 for the first yearJ^^ Although nearly sixty percent of mutual fund boards meet the seventy-five percent independent board requirement, eighty percent of mutual fund boards, which is approximately 3700 funds, will have to elect or nominate a new independent chair. This inherent conflict of interest has led numerous investment advisers to encourage private investors to deposit large sums of money into a mutual fund, thus increasing the mutual funds' assets and the investment adviser' s compensation.^^ The investment adviser then gives the private investor illegal or abusive privileges, such as market timing privileges, which harms other shareholders.^^ Section 17 of the ICA addresses and forbids certain self-dealing transactions in order to reduce the inherent conflict of interest that arises between shareholders and mutual fund investment advisers.^^	cache/inlawrev-3803.pdf	txt/inlawrev-3803.txt