A bill to amend the Investment Company Act of 1940 to define duties of certain persons subject to that act and for other purposes.

Provides that an investment adviser of a registered investment company, or an affiliated person or such investment adviser, may receive any amount of benefit in connection with a transaction which results in an assignment of an investment advisory contract with such investment company.

Provides that, in the event of any such transaction, not more than 25 percent of the directors of the investment company who are interested persons of either party to the transaction shall serve in such office effective at the date of commencement of the new advisory contract.

Provides that it shall be unlawful for the directors of a registered investment company, in connection with their evaluation of the terms of any contract whereby a person undertakes regularly to serve or act as investment adviser of such investment company, to take into account the purchase price or other consideration such person may have paid in connection with a transaction within the provisions of this Act.