In a divisive 3-2 vote, the Securities and Exchange Commission amended and re-approved a proposed rule requiring the directors of mutual funds to be independent that had been ruled against by a federal court in a lawsuit a little more than a week before.
To address the court's concerns, the amended rule added details about compliance costs and other matters, adding that the SEC had concluded that simply disclosing whether or not directors were independent would not be adequate.
The vote was seen by some as a rush to get the rule implemented, since Chairman William Donaldson was due to step down the next day (June 30), thus changing the balance of opinion at the commission.
The Chamber of Commerce, which brought the original suit, promised to sue again.
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