Vanguard Group founder John Bogle once called mutual fund board members “lap dogs” for their attentive response to the commands of fund management. Not any more. The Wall Street Journal reports that recent scandals in the mutual fund industry have made fund directors more activist, as they have stood up to management and pushed agendas that benefit investors. One of the most notable developments is the lowering of fees. In a dramatic turnaround, last year 808 mutual funds cut their fees while 263 raised them; in contrast, just two years earlier, only 367 reduced fees, while 417 pushed them up. Independent directors and chairman – regardless of the outcome of the challenge to the independent-director rule – has been catching on in a big way. According to the SEC, 60% of funds have about 75% independent directors, and the number of insiders sitting as chairman has dropped from about 80% just a few years ago to under 60% in 2004, the last year for which there are records. That number, says the Journal, is believed to have dropped significantly in the past year.