WASHINGTON - The Municipal Securities Rulemaking Board yesterday filed with the Securities and Exchange Commission amendments to its Rule A-3 on board membership and Rule A-4 on board meetings, changes that come amid an ongoing review of the board's rules and bylaws to ensure that they are clear and in line with "current good corporate governance practices."
Diane Klinke, the board's general counsel, described the changes as administrative, designed to update outmoded rules, some of which have not been touched in 30 years. They became effective immediately upon filing.
The modified Rule A-3 tightens some of the language and directs the board and its nominating committee to consider, "without limitation, diversity in the geographic location, size, and type of brokers, dealers, and municipal securities dealers represented."
Meanwhile, the changes to its Rule A-4 will enable the chairman of the 15-member board to call a special meeting directly, without going through the secretary of the board. It will also replace a requirement that notices of special meetings be mailed to members.
The new language says that members must simply be notified of a special meeting at least three days prior to a special meeting, unless "otherwise required by law" or "provided that such advance notice may be waived by unanimous consent of all board members attending such meeting." Previously, the board required that members receive notifications of special meetings at least seven days in advance.
