SIE practice questionhardInvestment Company Act - Board Requirements
What is the minimum percentage of disinterested directors required by the Investment Company Act of 1940 for an investment company’s board?
- ANo requirement
- BAt least 10%
- CA majority of the board
- DAt least 40%✓ Correct answer
Explanation
Why D — At least 40%
The Investment Company Act of 1940 generally requires at least 40% of an investment company's board to be independent or disinterested directors. A majority is not the statutory minimum, and 10% is too low.
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