Caption: Board of Trustees Minutes - 1986
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284 BOARD OF TRUSTEES [June 20 representing less diversification possibilities and thereby increasing overall portfolio risk. 3. Complete divestiture could be contrary to the policy of prudent investment and diversification whose goal is preservation and enhancement of public funds under the laws of Illinois. d. T h e current policy of the board of selective divestiture should be enhanced and amended to add the following provisions: Shareholder Petitions The University of Illinois will support petitions of a company doing business in South Africa where such petitions seek the following objectives: 1. the furnishing of information regarding corporate activities in South Africa; and 2. the termination or prevention of sales to the South African military or police. Stock Divestiture 4. The company has not attained one of the top two rating categories of the Sullivan Principles or comparable standards of performance or has fewer than 25 employees in South Africa. 5. The company has a major portion of its business in South Africa, defined as production of 25 percent of its gross sales in that country. Bank Relationships The comptroller will determine and report to the board that its primary bank (defined as the bank the University uses to perform its basic banking services) conforms to the following criteria: 1. The primary bank makes no new loans to the government of South Africa or any agency thereof. 2. The primary bank has no outstanding loans to the government of South Africa or any agency thereof. 3. The primary bank does not sell Krugerrands. e. The board further believes that sanctions affecting the government of South Africa and companies doing business there are the appropriate function of the U.S. government, and are now being considered by Congress. Be it further resolved that the policy statement adopted March 21, 1979, as herein amended, shall be republished and be implemented immediately with notification to each corporation whose securities the University owns and which does business in South Africa. Revisions to board policy will continue to be reviewed and revised to assure its conformance to the laws of the State of Illinois and of the United States. Mr. Logan then presented the following substitute motion and moved its adoption: I would like first to congratulate the administration, Vice President Bazzani, and his staff for having completed a monumental task in providing this board with the report on divestiture. I would like further to add that in my opinion the report is clear-cut and is impartial. The board has been given three options which I will not detail since we all have read the report. I believe that I am fully aware of my fiduciary responsibilities and of the personal liability that I may incur and that the other board members may incur, insofar as establishing a financial policy that could be detrimental to this University. The word "prudent" has been used in many arguments, pro and con divestiture. My concern is how prudent is it, or how safe is it to continue
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