Amendment Filed to Rule A-3, on Membership on the Board
On August 9, 2007, the Municipal Securities Rulemaking Board filed with the Securities and Exchange Commission (“SEC”) an amendment to Rule A-3, on membership on 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-3 currently provides, among other things, that no member of the Board may succeed himself or herself in office and no broker-dealer representative or bank representative may be succeeded by any person associated with the broker, dealer or municipal securities dealer with which the member was associated at the expiration of his or her term. The Board has determined to modify this provision in the rule to permit a sitting Board member to serve a second consecutive term, through the standard nomination and election process. The rule amendment does not establish a lifetime limit on the number of terms a person could serve but does limit a person to serving two terms in succession. Sitting and former Board members would be required to undertake the same nomination and election process applicable to new applicants for Board membership. The rule amendment also maintains the existing prohibition on having a representative of a dealer or bank immediately succeed the expiring term of another representative of the same dealer or bank, other than in the case of a sitting Board member succeeding him or herself. The amendment became effective upon filing with the SEC.
Questions about the amendment may be directed to Catherine A. Courtney, Assistant General Counsel.
August 9, 2007
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TEXT OF AMENDMENT [2]
Rule A-3: Membership on the Board
(a) – (b) No change.
(c) Nomination and Election of Members.
(i) Members shall be nominated and elected in accordance with the procedures specified by this rule. All members of the Board shall be elected for terms of three years, so that the terms of office of one-third of the whole Board shall expire each year. The terms of office of all members of the Board shall commence on October 1 of the year in which elected and shall terminate on September 30 of the year in which their terms expire. A member of the Board may serve additional terms as a Board member upon nomination and election for each such additional term in accordance with the procedures specified by this rule, provided that a [No] member of the Board may immediately succeed himself or herself in office for a single successive term upon nomination and election for such successive term in accordance with the procedures specified by this rule. No [and no] broker-dealer representative or bank representative may be succeeded in office by any person associated with the broker, dealer or municipal securities dealer with which such member was associated at the expiration of such member’s term except in the case of a Board member who succeeds himself or herself in office.
(ii)-(vii) No change.
(d) – (f) No change.
[1] File No. SR-MSRB-2007-02. Comments on the amendment should be submitted to the SEC and should reference this file number.
[2] Brackets denote deletions and underlying denotes additions to the rule.
On August 9, 2007, the Municipal Securities Rulemaking Board filed with the Securities and Exchange Commission (“SEC”) an amendment to Rule A-3, on membership on 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-3 currently provides, among other things, that no member of the Board may succeed himself or herself in office and no broker-dealer representative or bank representative may be succeeded by any person associated with the broker, dealer or municipal securities dealer with which the member was associated at the expiration of his or her term. The Board has determined to modify this provision in the rule to permit a sitting Board member to serve a second consecutive term, through the standard nomination and election process. The rule amendment does not establish a lifetime limit on the number of terms a person could serve but does limit a person to serving two terms in succession. Sitting and former Board members would be required to undertake the same nomination and election process applicable to new applicants for Board membership. The rule amendment also maintains the existing prohibition on having a representative of a dealer or bank immediately succeed the expiring term of another representative of the same dealer or bank, other than in the case of a sitting Board member succeeding him or herself. The amendment became effective upon filing with the SEC.
Questions about the amendment may be directed to Catherine A. Courtney, Assistant General Counsel.
August 9, 2007
* * * * *
TEXT OF AMENDMENT [2]
Rule A-3: Membership on the Board
(a) – (b) No change.
(c) Nomination and Election of Members.
(i) Members shall be nominated and elected in accordance with the procedures specified by this rule. All members of the Board shall be elected for terms of three years, so that the terms of office of one-third of the whole Board shall expire each year. The terms of office of all members of the Board shall commence on October 1 of the year in which elected and shall terminate on September 30 of the year in which their terms expire. A member of the Board may serve additional terms as a Board member upon nomination and election for each such additional term in accordance with the procedures specified by this rule, provided that a [No] member of the Board may immediately succeed himself or herself in office for a single successive term upon nomination and election for such successive term in accordance with the procedures specified by this rule. No [and no] broker-dealer representative or bank representative may be succeeded in office by any person associated with the broker, dealer or municipal securities dealer with which such member was associated at the expiration of such member’s term except in the case of a Board member who succeeds himself or herself in office.
(ii)-(vii) No change.
(d) – (f) No change.
