What Boards Can Learn From Morgan Keegan

Law360, New York (April 18, 2013, 12:13 PM EDT) -- On Dec. 10, 2012, the U.S. Securities and Exchange Commission charged eight former members of the board of directors (consisting of two “interested” and six independent directors) (the “MK board” or the “MK directors”) of the Morgan Keegan funds with a number of violations under the Investment Company Act of 1940, as amended (the “1940 Act”). These charges related to alleged failures by the MK board in connection with their valuation oversight responsibilities for five funds that invested heavily in subprime mortgage backed securities (the “MK...
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