[pdog]

Of the proposed solutions, some combination of the following three items would be a solid first step (incremental without being too drastic):

* Full public disclosure by index funds of their voting policies and public documentation of each engagement with corporate managers.

* Require index funds to retain an independent supervisory board with full responsibility for all decisions regarding corporate governance.

* Make it clear that directors of index funds and other large money managers have a fiduciary duty to vote solely in the interest of the funds’ shareholders.

[xkjkls]

> Make it clear that directors of index funds and other large money managers have a fiduciary duty to vote solely in the interest of the funds’ shareholders.

That's easy to say, but deciding what the shareholders interest is can be incredibly difficult. On any difficult decision, like "should this merger be approved", index funds taking any position is the same as active management.