ABA Section of Business Law
ABA Section of Business Law
Business Law Today
March / April 2000
Mutual fund structure
Shareholders
• Right to elect board of directors
• Right to vote on changes to investment adviser contract
• Right to vote on fundamental policy changes
Board of directors
• Authority to execute advisory contract
• Fiduciary duties to shareholders
• Authority to manage affairs of fund
Mutual fund
Investment adviser
• Manages fund portfolio based on
objectives described in prospectus
Distributor
• Sells fund shares
Transfer agent
• Processes share orders
Custodian
• Holds fund assets
* Source: Investment Company Institute
