Board of Visitors minutes March 21, 1986 | ||
Attachment B
PROXY ADVISORY COMMITTEE
SPECIAL REPORT ON THE LUBRIZOL CORPORATION
MARCH 18, 1986
- The Proxy Advisory Committee recommends the divestment of 15,000 shares of Lubrizol Corporation currently valued at $407,000. In reaching this conclusion the Committee considered the following issues:
- 1. 40 employees and 2% of sales ($19.7 million) is a significant involvement and warrants attention.
- 2. Lubrizol refuses to sign the Sullivan Principles or an equivalent standard which is audited externally. The Committee does not believe that President Reagan's Executive Order of September 9, 1985 addresses the same concerns for positive action in opposition to the policies of apartheid.
- 3. The Company's responses present no evidence of active opposition to apartheid.
- 4. The Company, in its letters over the past 6 years, has been unresponsive to the concerns of the University and the Committee when information has been requested. No attempt has been made by Lubrizol to substantiate its positive activities in South Africa.
- Proxy Advisory Committee
- Divestment Report 1
- March 18, 1986
- Page 2.
- 5. Discussions with the investment advisor revealed that the Company tends to be unresponsive to analysts' concerns in general and therefore their approach to responding to our correspondence is not uncharacteristic. Their letters, however, were deemed to be unresponsive at best and rude at worst. In 1985 the stock had a high of $28 per share and low of $20 and traded on average around $22 per share. The current price of 27 1/8 reflects the trend in lower oil prices since December, 1985 and the advisor believes that since this run has occurred already, suitable substitutes could now be found without a great deal of difficulty.
- The vote on the part of the Committee was unanimous.
Board of Visitors minutes March 21, 1986 | ||