Disclosure rules strengthened

Friday, Jan. 24, 2003 | 9:47 a.m.

WASHINGTON -- Over industry objections, the Securities and Exchange Commission will force mutual funds to disclose to investors how they voted on decisions at the firms whose shares they hold.

The SEC also voted Thursday to adopt a rule that outside corporate lawyers must go to company officials if they suspect fraud. That was a weakened move from an earlier proposal that also would have required lawyers to inform the SEC if they couldn't get company officials to stop the fraud.

Companies themselves will be required to notify the SEC if attorneys have resigned in protest, as they must do when an accounting firm resigns from auditing a company's books.

archive