A system which some industry lawyers say has become an anachronism for large mutual fund complexes - having one board of directors for each mutual fund in a complex - may be headed for extinction.

Mutual fund complexes which consist of a significant number of mutual funds should have only one or a few boards of directors, a special committee formed by the Investment Company Institute said last week. The ICI Advisory Group on Best Practices for Fund Directors said such a system should reduce expenses, eliminate redundancies and increase the leverage which fund boards have when negotiating contracts with the investment advisers who manage fund assets.

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