Wednesday, June 13, 2007

Preemptive Divestment Attack

New York state Comptroller, Thomas DiNapoli, has begun a mission to rid the state's pension plans of companies with ties to Sudan. While most trustees have preferred to wait for state legislation requiring divestiture, Thomas DiNapoli has taken a different route. His plan involves working alongside the Sudan Divestment Task Force and state legislators to determine portfolio companies with "harmful" Sudanese ties. Before divesting from Sudan-linked companies, the companies will be asked to suspend business activity in Sudan or increase humanitarian aid and relief funding. Failing to do so will result in divestment. DiNapoli's unconventional strategy allows him to work alongside lawmakers giving him an uncommon level of control not available to most trustees facing divestment requirements.

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