THE BOARD OF DIRECTORS
Learn even more about this topic with the Encyclopedia of Personal Finance™
Each mutual fund has a board of directors. The board retains a
management company to manage the fund. It chooses an underwriter, or
distributor, to distribute shares. The board also chooses a custodian to perform
bookkeeping and clerical tasks.
The members of
the board must sign the investment advisory agreement, which must be
approved by the shareholders. The investment advisory agreement is a contract
between the fund and the investment advisor.
The shareholders of the fund elect the board of directors at the
annual meeting. Each shareholder receives a proxy ballot by mail to use to cast
his or her votes.
Now we come to what you as an investor can do for your