Quinn Curtis

Taking Exit Rights Seriously: Why Governance and Fee Litigation Don’t Work in Mutual Funds

120 Yale L.J. 84 (2010).  Unlike shareholders of ordinary companies, mutual fund shareholders do not sell their shares—they redeem them from the issuing funds for cash. We argue that this unique form of exit almost completely eliminates mutual fund investors’ incentives to use voting, boards, and fee liability. Investors will almost never become active in their funds even if the...