| |
| |
Caption: Board of Trustees Minutes - 1940
This is a reduced-resolution page image for fast online browsing.
EXTRACTED TEXT FROM PAGE:
So8 BOARD OF TRUSTEES [July 21 does not make possible the expeditious handling of problems as they arise. A provision is needed to make it possible for the Finance Committee to act on these matters on the basis of recommendations received from the investment counsel and transmitted to the Committee by the Comptroller. Article III, Section 4, of the By-laws also provides that a record vote of the Board be taken on the sale of bonds, whereas this procedure has not been followed for some time. It should be kept in mind that the present By-laws were originally adopted in 1908. Proposed Procedure 1. It is proposed that Article I I I , Section 4, of the By-laws be amended to omit the words "or sale of bonds," thus eliminating the necessity of a record vote on proposals relating to investments. 2. It is proposed that Article IV, Section 3, paragraph 2, of the By-laws be amended to eliminate reference to "bonds or other securities" thus restricting the power of the Executive Committee only to the sale or purchase of real estate. 3. It is proposed to adopt a revised policy for the investment of trust funds to replace the rules approved April 8, 1925. In this statement it is provided that the Finance Committee, on recommendation of investment counsel, shall make recommendation to the Board or the Executive Committee for the purchase or sale of securities, but in an emergency may authorize immediate action when the interests of the University so require, in which case a report should be made to the Board at the next succeeding meeting. It also provides that investments shall be made in accordance with the Illinois Statutes except where otherwise provided in any individual fund and that funds unrestricted as to investment shall be pooled for investment purposes. These policies represent no change in present procedure so far as the method of selecting investments or of handling funds is concerned. PROPOSED REVISIONS IN B Y - L A W S OF THE BOARD OF TRUSTEES Article HI, Section 4, to be amended to read: A record vote of the Board shall be had on all propositions for the appropriation of the funds of the University or its expenditures or to create any liability, or on the sale, purchase, or leasing of real estate, and on any contract for the construction of buildings or any amendment or revision of the Statutes of the University or By-laws of the Board, and on the demand of any members of the Board made before the announcement of a vote otherwise taken. Article IV, Section 3, paragraph 2, to be amended to read: It shall not have the power to lease, sell, or purchase real estate unless previously authorized by the Board in session or a majority of the members individually in writing. PRESENT R U L E S FOR INVESTMENT OF T R U S T F U N D S It shall be the duty of the Comptroller of the University to notify the President of the University whenever money belonging to any Trust Fund requires investment or when re-investment seems advisable. The President shall report the matter to the Finance Committee and to the Board with information he may secure from those informed on such matters. The Finance Committee shall then make a recommendation to the Board for the investment of said funds in accordance with the statutes of the State of Illinois for the investment of T r u s t Funds. PROPOSED POLICY FOR INVESTMENT OF T R U S T F U N D S 1. An investment counsel shall be engaged by the Board on the recommendation of the Finance Committee to advise concerning the purchase and sale of securities. 2. It shall be the duty of the Comptroller to notify the Finance Committee whenever any moneys are on hand in trust funds requiring investment or when any change in investment becomes advisable. W i t h such notice he shall transmit to the Committee the recommendations of the investment counsel concerning available investments and such other information as he may consider desirable.
| |
