Repository: UIHistories Project: Board of Trustees Minutes - 1988 [PAGE 67]

EXTRACTED TEXT FROM PAGE:

1986]

UNIVERSITY OF ILLINOIS

57

ing the funds held in trust by the board, such prudence being in contrast with the social and economic volatility occurring in South Africa, Now, Therefore, the Board of Trustees of the University of Illinois declares: 1. T h a t the rapid deterioration in the stability of the political, economic, and social structure of South Africa, together with the accelerating number of state, university, local, and other institutional investors which have adopted divestment policies may have a negative effect on University investments in corporations doing business in South Africa; and 2. T h a t the Reverend Leon Sullivan, the principal advocate of eliminating apartheid through affirmative involvement in U.S. corporations in South Africa, established a two-year timetable in May 1985 when he stated, " . . . if Apartheid is not actually and in fact statutorily abolished as a system within the next 24 months [by May 31, 1987], all U.S. companies should withdraw from South A f r i c a . . . . " 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 will support the following shareholder resolutions: (1) the withdrawal of that corporation's operations from South Africa; (2) to furnish information regarding corporate activities in South Africa; (3) the termination or prevention of sales to the South African military or police. 2. If the government of South Africa has not statutorily abolished the apartheid system by May 31, 1987, then the University shall, in a sound financial manner, begin to eliminate its investments in U.S. corporations with operations in South Africa, such sale to be concluded not later than December 31, 1988. I n addition, effective J u n e 1, 1987, the University shall not make new investments in any U.S. corporation with operations in South Africa. 3. If the government of South Africa has not statutorily abolished the apartheid system by May 31, 1987, and the primary bank has loans with, or is otherwise extending credit to the government of South Africa, then the University shall, in a sound financial manner, withdraw its deposits and terminate its agreements with such primary bank not later than December 31,1988. 4. T h e university comptroller shall make quarterly reports on progress in implementing this investment policy and shall advise the board immediately if it should appear that the implementation of this policy might violate the board's fiduciary responsibilities with respect to the prudent investment of University funds.