An appeals court panel Tuesday denied the U.S. Chamber of Commerce's request for a rehearing on whether the Securities and Exchange Commission was justified in amending its rules to impose the independent chair provision.
The U.S. Court of Appeals for the District of Columbia ruled against the chamber on the justification issue in its lawsuit opposing the provision requiring that the chairman of a mutual fund board and 75% of its directors must be independent.
The court did, however, issue a stay last month after former SEC Chairman William H. Donaldson pushed through a second vote on the rule at his last meeting at the agency in June. The SEC had been ordered by the court to reconsider the cost of the measure. The stay suspends implementation of the rule until the lawsuit is resolved.