• U.S. Court of Appeals Overturns Director Independence Rules
  • April 11, 2006 | Author: John L. Chilton
  • Law Firm: Sullivan & Worcester LLP - Washington Office
  • The U.S. Court of Appeals for the District of Columbia Circuit ruled on April 7, 2006 that the Securities and Exchange Commission ("SEC") violated the Administrative Procedures Act ("APA") in promulgating a rule that requires registered investment companies under the Investment Company Act of 1940 that rely on certain of the SEC's Exemptive Rules to have (1) boards of directors with at least 75% independent directors and (2) an independent board chair ("Independence Rules").