Fall 1999, 4

Professor David Ruder

David S. Ruder, William W. Gurley Memorial Professor at Northwestern University School of Law and former Securities and Exchange Commission Chairman, has been named chair of the newly created Mutual Fund Directors Education Council, a program to be administered by the Law School. "The Council was formed in response to SEC Chairman Arthur Levitt's call for improved fund governance," said Van Zandt. "We agree wholeheartedly with Chairman Levitt's praise of David Ruder's 'distinguished tenure as SEC chairman' and his ability to bring the same type of leadership to the Council."

The Council will provide independent fund directors with the tools they need to be more effective advocates of fund shareholder interests, drawing upon the knowledge and experience of independent fund directors, corporate governance experts, investor advocates, industry representatives, attorneys and leading academics.

Initially chaired by Professor Ruder, the Council will encourage the development of programs to promote a culture of independence and accountability in fund boardrooms. "The formation of the Council represents an important step forward in continuing efforts to enhance the effectiveness of independent fund directors and improve fund governance," said Ruder.

Associate Dean J. William Elwin, Jr will serve as the Planning Director of the Council, which includes eminent business and mutual fund executives, lawyers and law professors.

In a separate news announcement, Levitt indicated that the Commission staff will support the Council as its pursues its goals. SEC Commissioner Norman S. Johnson will serve as an advisory member of the Council and oversee the Commission staff's efforts. Professor Ruder stated, "Chairman Levitt has said before that directors' independence depends, in part, on their state of mind. What better way to help sharpen the independent mindedness of fund directors than through programs that will educate and challenge independent fund directors?"

(for more information and a list of Council members)