Two mutual fund shareholders are challenging the constitutionality of a two-month-old Maryland law designed to define what makes a mutual fund director independent.
The shareholders, David Migdal and Linda Rohrbaugh, contend that Maryland Gov. Parris N. Glendening (D) violated the Maryland constitution when he signed legislation providing that mutual fund directors do not lose their independence by serving on the board of more than one mutual fund in the same mutual fund complex. The governor signed the measure March 24. Migdal and Rohrbaugh, investors in two of the mutual funds of T. Rowe Price Associates of Baltimore, alleged the new law violates a provision in the Maryland constitution that permits legislation to address only one subject.