State whether the following statements are true in describing government regulations put in place to check the mutual fund industry's behavior.

Statement

Directors are required to reveal any relationships that exist between fund owners and investment managers but are not required to reveal information about compensation arrangements between the mutual fund and sales brokers.

Funds are required to have an independent board chairman, and a majority of the board must be independent, but the independent board members cannot hold executive sessions outside the presence of fund managers.

Mandatory redemption fees may penalize the investor who needs to make an unexpected withdrawal due to an emergency, thereby reducing the popularity of mutual funds. But, a voluntary redemption fee rule has solved this problem.