Repository: UIHistories Project: Board of Trustees Minutes - 1988 [PAGE 68]

EXTRACTED TEXT FROM PAGE:

58

BOARD OF TRUSTEES

[September 11

Mr. Logan moved approval of the recommendation. The trustees discussed the recommendation at length, presenting a number of salient points. In general, individuals in favor emphasized: its significance solely as an investment policy (as opposed to a moral issue or a foreign policy matter); the importance of respecting advice and recommendations from the president; or that it did in fact represent a desirable moral stance for the University to take. Objections to the recommendation emphasized that it was not a valid fiduciary step but was laden with political and social aspects; that it was offered in reaction to activities in other states (i.e., California) rather than on its merits for the University; its failure to include a "hold harmless" clause by which the trustees would be protected from liability; and finally, such action would encourage a perception that the trustees have responded to political, social, or other pressures. Mr. Hahn then proposed amendments to the president's recommendations, viz.: to delete the requirement that the University begin to disinvest by May 31, 1987 (see recommendation no. 2 ) ; to retain the second sentence of recommendation 2 but altered to make "immediately effective" a recommendation to make no new investments; and to substitute for recommendation no. 3 the following language: "Effective immediately, the University shall direct those charged with investing for the University to take into account in managing the University's investments (and using their best professional judgment), the anticipated decline in the value of companies having interest in South Africa." All other elements of the recommendation would be retained. The question was called on Mr. Halm's amendments and the motion to amend was defeated by the following roll call vote: Aye, Mrs. Day, Mrs. Gravenhorst, Mr. Hahn, Mr. Madden; no, Mr. Forsyth, Mr. Howard, Mr. Logan, Mrs. Shepherd, Miss Smith; absent, Governor Thompson. (The student advisory vote was: Aye, none; no, Mr. Filip, Mr. Starkeson.) The question then was called on the main motion (Mr. Logan's) to support the recommendation of the president and the motion failed by the following roll call vote: Aye, Mr. Howard, Mr. Logan, Mrs. Shepherd, Miss Smith; no, Mrs. Day, Mr. Forsyth, Mrs. Gravenhorst, Mr. Hahn, Mr. Madden; absent, Governor Thompson. (The student advisory vote was: Aye, Mr. Filip, Mr. Starkeson; no, none.) (The board then recessed to complete the meeting of the Committee on Finance and Audit 1 and reconvened at 11:50 a.m. to deal with the following matters.)

1 Earlier, at a brief meeting of the Finance and Audit Committee, the trustees received testimony in favor of divestiture and other steps that might be taken with regard to South Africa from Vernon Barkstall, executive director of the Urban League of Champaign County.