Repository: UIHistories Project: Board of Trustees Minutes - 1992 [PAGE 398]

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386

BOARD OF TRUSTEES

[November 12

On motion of Mrs. Gravenhorst, the Bylaws were amended by the following vote: Aye, Dr. Bacon, Mr. Boyle, Mrs. Calder, Dr. Gindorf, Mr. Grabowski, Mrs. Gravenhorst, Mr. Lamont, Ms. Lopez, Ms. Reese; no, none; absent, Governor Edgar. (The student advisory vote was: Aye, Ms. Huff, Mr. Riley; no, none.)

Amendment to Policy Regarding Investments in South Africa

(3) Since 1972, this board, in common with many other institutional investors, public interest groups, and individual shareholders, has wrestled with the social implications of its policy on investments in companies doing business in South Africa. These discussions culminated, in 1987, in a board policy requiring the termination of such investments in the absence of the abolition of apartheid in South Africa. Following the official ending of apartheid in South Africa in September of 1993, the Senate of the United States passed a measure eliminating economic sanctions against South Africa; and Nelson Mandela, president of the African National Congress, requested that educational institutions rescind their divestment policies. Therefore, I now recommend approval of the following resolution to amend the existing policy by removing all restrictions against investment in corporations or banks doing business in South Africa.

Amendment to the South African Investiture Policy

Whereas, after much study and discussion, on January 15, 1987, the Board of Trustees approved a South African divestiture policy to be effective May 31, 1987. Whereas, the government of South Africa statutorily abolished the apartheid system on September 23, 1993. Whereas, Nelson Mandela, president of the African National Congress, in his address before the United Nations General Assembly on September 24, 1993, called upon the United States and other countries to end most economic sanctions against South Africa. Whereas, Nelson Mandela specifically requested educational institutions and pension funds to rescind South Africa divestment policies and requested the return of American corporations to South Africa with capital and management in order to speed economic recovery. Whereas, the Senate of the United States passed a measure eliminating United States economic sanctions against South Africa on September 24, 1993. Now, Therefore, the Board of Trustees resolves and adopts the following amendment to its policy with respect to the investment of University funds in corporations and banks doing business in South Africa: 1. Effective immediately, the University shall remove all restrictions regarding investment in corporations or banks doing business in South Africa. 2. The university comptroller shall review University investment programs and implement investment portfolio modifications to reflect the change in policy. 3. The Board of Trustees reserves the right to revisit this change in policy if subsequent events do not provide fundamental human, political, and economic rights for all citizens of South Africa.

On motion of Dr. Bacon, the foregoing resolution was adopted by the following vote: Aye, Dr. Bacon, Mr. Boyle, Mrs. Calder, Dr. Gindorf, Mr. Grabowski, Mrs. Gravenhorst, Mr. Lamont, Ms. Lopez; no, Ms. Reese; absent, Governor Edgar. (The student advisory vote was: Aye, none; no, Ms. HufF, Mr. Riley.)