Repository: UIHistories Project: Board of Trustees Minutes - 1986 [PAGE 301]

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290

BOARD OF TRUSTEES

[June 20

formance. (However, divestiture will not be considered if the company has fewer than 25 employees in South Africa.) 1 5. T h e company has a major portion of its business in South Africa, defined as production of 10 percent of its gross sales in that country. Bank Relationships T h e 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. T h e primary bank makes no new loans to the government of South Africa or any agency thereof. 2. T h e primary bank has no outstanding loans to the government of South Africa or any agency thereof. 3. T h e primary bank does not sell Krugerrands. e. T h e 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. President Shepherd then made the following remarks:

For more than 20 years, members of the Board of Trustees have unanimously and officially condemned the apartheid policies of the government in South Africa. Board members have conscientiously struggled as individuals to find an appropriate and effective response to the evils of apartheid consistent with laws of this State, including adopting a policy of refusing to own stock in companies doing business in South Africa that did not meet standards of performance consistent with the board's criteria and its fiduciary responsibilities. In reviewing its investment policies, the board has also kept in mind both the State laws that restrict its choices regarding investment management and the cherished role of universities as centers of learning, free debate, research, and public service. In recent days, the board has studied a new in-house review of the investment issue. During yesterday's meeting of the Finance and Audit Committee, we again listened to the views of groups that also care deeply about this complex issue. As a result, the trustees have voted to strengthen the board's current policy of selective divestiture in companies that do business in South Africa.

1 An ambiguity in the language under "Stock Divestiture," Number Four, was detected later and by action of the board on July IS, 1985, this section was amended to read: "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.] (However, divestiture wiil not be considered if ike company has fewer than 25 employees in South Africa.) See minute* of the Board of Trustees, July 18, 1985. (New language is shown in italics; deleted language, in brackets.)