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%
At least 40% of the board must be independent/disinterested under the Act. The Act does not require a majority (C) or allow no requirement (D). 10% is too low.
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