Repository: UIHistories Project: Board of Trustees Minutes - 1978 [PAGE 438]

EXTRACTED TEXT FROM PAGE:

1977]

UNIVERSITY OF ILLINOIS

427

mittee has also sought and received from the president of the University an analysis of its present policy and procedures and some specific suggestions and alternatives as to actions the committee might take. On the basis of this review, the committee now is prepared to act as follows: 1. Amend the committee's procedures to make it clear that, in general, a hearing on shareholder proposals and other related matters will be a normal part of the committee's review process, thus accelerating the work of the committee ; and 2. Recommend to the Board of Trustees a specific course of action with regard to the voting of proxies and public reports thereof and with regard to communications with the management of corporations. The specific action and recommendation of the committee follow:

I. Amendment of Finance Committee Procedures Concerning University Investment Policy

The Finance Committee herewith amends Item 2 in its procedures concerning investment policy to read as follows: Unless the consideration of the allegations leads the committee to determine that the allegations are without merit, it will arrange for a hearing in which further information will be sought bearing on the matters indicated above and, in addition, on the question of whether a substantial consensus exists in the University community on the specific question. A decision not to hold a hearing will be reported by the committee to the board for review. The present text of the procedure reads as follows: Should the committee decide that the complaint merits further investigation, it will notify the complaining group and arrange for a hearing in which further information will be sought bearing on the matters indicated above and, in addition, on the question of whether a substantial consensus exists in the University community on the specific question. 1

II. Recommendation to the Board of Trustees

The committee recommends that the University's response concerning shareholder proposals placed before the annual meetings of all U.S. corporations doing business in South Africa in which the University holds stock should be as follows: 1. The University will vote its proxies in support of all shareholder proposals seeking the following corporate acts: a. Termination of further investment in South Africa, b. Prudent withdrawal of all current investment in South Africa, and c. Provision of information about corporate activities in South Africa. 2. The University will provide a public report concerning its proxy votes on all proposals related to U.S. corporate activity in South Africa. 3. The University will communicate with the management of the corporations, expressing University opposition to all corporate activity which supports a n d / o r furthers the policy of apartheid in South Africa.

On motion of Mr. Livingston, these recommendations were approved, and the Finance Committee procedures were amended as recommended.

1

Minutes, Board of Trustees, January 19, 1972, page 465.