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Amendment Filed to Rule A-6, on Committees of the Board


On October 24, 2006, the Municipal Securities Rulemaking Board filed with the Securities and Exchange Commission (“SEC” or “Commission”) an amendment to Rule A-6, on committees of the Board.[1]  The Board has been reviewing its administrative rules and by-laws to ensure that they are consistent with current good corporate governance practices.  Rule A-6 currently provides, among other things, that in all matters, the role of any Board committee shall be solely advisory.  The Board has determined to delete this provision from the rule (as well as from By-Law Article 6) to allow Board committees to undertake appropriate responsibilities at the direction of the Board or pursuant to the committee charters consistent with such good corporate governance practices.[2]  The amendment became effective upon filing with the SEC. 

Questions about the amendment may be directed to Ernesto A. Lanza, Senior Associate General Counsel.

October 24, 2006


Rule A-6: Committees of the Board

(a) Establishment.  The Board may establish one or more standing or special committees, each to have and exercise such powers and authority as may be provided by the Board in the resolution establishing such committee; provided, however, that no such committee shall have the authority to exercise any of the powers and authority specifically required to be exercised by the entire Board by the Act or by rule of the Board or other applicable law.  [In all matters, the role of any committee shall be solely advisory.]  The Chairman of the Board shall be an ex officio member of each committee.

(b) No change.

[1] SR-MSRB-2006-08.  Comments on the amendment should be submitted to the Commission and should reference this file number.

[2] Such practices include, but are not limited to, vesting responsibility in the audit committee for the hiring, firing and compensation of the independent financial auditors.   

[3] Brackets denote deletions.