Fund governance standards
(7) Fund governance standards. The board of directors of an investment company (fund) satisfies the fund governance standards if: (i) At least seventy-five percent of the directors of the fund are not interested persons of the fund (disinterested directors) or, if the fund has three directors, all but one are disinterested directors; (ii) The disinterested directors of the fund select and nominate any other disinterested director of the fund; (iii) Any person who acts as legal counsel for the disinterested directors of the fund is an independent legal counsel as defined in paragraph (a)(6) of this section; (iv) A disinterested director serves as chairman of the board of directors of the fund, presides over meetings of the board of directors and has substantially the same responsibilities as would a chairman of a board of directors; (v) The board of directors evaluates at least once annually the performance of the board of directors and the committees of the board of directors, which evaluation must include a consideration of the effectiveness of the committee structure of the fund board and the number of funds on whose boards each director serves; (vi) The disinterested directors meet at least once quarterly in a session at which no directors who are interested persons of the fund are present; and (vii) The disinterested directors have been authorized to hire employees and to retain advisers and experts necessary to carry out their duties.