Table: Why the Rules Need Revamping

THE INTENT OF THE RULES WHAT REALLY HAPPENS

-- Independent directors ensure that -- That doesn't mean funds have to fees fund companies charge invest- offer the lowest possible fees, ors are fair. and many don't.

-- Directors can take a fund away from -- Shareholders must approve the the company that runs it if perform- decision. Rare attempts to do so ance is egregiously bad. have turned into unsuccessful legal fights.

-- The board monitors fund business -- Directors may oversee dozens of closely. funds, making it likely they'll rubber-stamp management deci- sions.

-- Independent directors avoid con- -- The exemption is too large and flicts of interest by disclosing may let directors do significant payments from the fund of more than undeclared business with their $60,000. funds.

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