Repository: UIHistories Project: Board of Trustees Minutes - 1986 [PAGE 294]

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1985]

UNIVERSITY OF ILLINOIS

283

meeting, the Board of Trustees reconvened, at 10:00 a.m., to consider the University's policy with regard to investments in corporations doing business in South Africa.1

Policy, University Investments and South Africa

(2) Mr. Howard offered a resolution which he described as an enhancement of the present policy. He expressed the view that perhaps there was no "middle ground" on this question. He did not believe the board was ready to vote for something because it was easy or popular, i.e., total divestiture, or to t a l e a position at either end of the spectrum. He presented the following resolution and moved its adoption: Whereas, the Board of Trustees instructed the administration to study and report upon the ramifications of divestiture of investments in companies doing business in South Africa, after receiving requests from the Student Government Association at Urbana and other student groups; and Whereas, the review of issues which resulted has been received and studied in detail by the board, which has also received formal and informal presentations from student groups and others from the Urbana and Chicago campuses; and Whereas, the board is mindful of the 20-year history of board study, review, and decisions upon these issues; and Whereas, the board has received an opinion of its university counsel which outlines its fiduciary responsibilities regarding the investment of public funds under the laws of the State of Illinois; and Whereas, the board believes that modifications should be made to its official policies; Now, therefore, be it resolved by the Board of Trustees of the University of Illinois as follows: a. The board expresses its appreciation to the administration for the preparation and presentation of a thorough, thoughtful, and evenly balanced review of the issues before the board involving investments in companies doing business in South Africa. b. The board reiterates and emphasizes its continuing and deeply held opposition to racial injustice and the deprivation of human rights which exist as the official policy of the government of South Africa (as represented by apartheid) and which exists in other countries as well. c. The board continues to believe, along with a majority of public and private institutions of higher education in this country, that its policy dealing with investments in U.S. corporations doing business in South Africa is morally sound and fiscally responsible. Further, the board believes that: 1. Complete divestiture by the University would have minimal effect upon the companies whose stock is sold or upon the government of South Africa; absence of standing as a stockholder would diminish further avenues of influence; 2. Replacement of investments sold would, of necessity, require purchase of securities in companies with smaller capitalization, thereby

1 On the previous day. June 19, the Finance and Audit Committee met, from 1:30 to 4:30 p.m., to review and provide a hearing concerning a report, "A Review of Issues Concerning University Investments in U.S. CorporaUons Doing Business in South _ Africa." The report was prepared by the Office of the Vice President for Business and Finance in accord with a directive from the board of November 14, 1984. A copy of the report is filed with the secretary for record. The committee, with all members of the board present, received testimony from some twenty spokesmen from various campus and other organizations interested in the subject. The majority of the speakers favored divestiture by the University of its investments in companies doing business in South Africa.