Microsoft

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on Friday named three members of its board of directors to an antitrust compliance committee, a new requirement included in a judge's ruling a week ago in the antitrust case against the software maker.

Microsoft announced that board member James I. Cash, a professor at Harvard Business School who joined the board in June 2001, will serve as chairman of the compliance committee. Other members of the committee will be Ann McLaughlin Korologos, a former U.S. Secretary of Labor and currently a senior advisor at Benedetto, Garland & Co, and Raymond Gilmartin, chairman, president and CEO of

Merck & Co

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.

In her final judgment last Friday in the antitrust case against Microsoft, U.S. District Court Judge Colleen Kollar-Kotelly required the Microsoft board of directors to create the compliance committee within 30 days. She said it must consist of at least three directors who are not former or present Microsoft employees.

The judge's final judgment was conditional on Microsoft, the Department of Justice and nine settling states proposing an amendment to give the court more authority overseeing the ruling. That proposed amendment was due Friday.

The compliance committee established Friday is charged with hiring a compliance officer, who will report to the committee and Microsoft's CEO. The compliance officer will be responsible for developing and supervising Microsoft's internal programs to ensure compliance with antitrust laws and the judge's final judgment.

The compliance officer also will be required to certify every year that Microsoft is complying with the final judgment, maintain a record of all complaints received and action taken by Microsoft in response to such complaints, and promptly report any credible evidence of violation of this final judgment.

Shares of Microsoft declined 91 cents, or 1.6%, to close Friday at $55.10. Shares inched up to $55.17 in after-hours trading.