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92_HR0664 LRB9216097RHrh 1 HOUSE RESOLUTION 2 WHEREAS, The recent collapse of the Enron Corporation has 3 been characterized as the single largest collapse of any 4 American corporation in our nation's history; and 5 WHEREAS, Illinois is reported to have lost no less than 6 33 million dollars in its public pension funds as a result of 7 the collapse of the Enron Corporation; and 8 WHEREAS, On Friday, February 1, 2002, the Special 9 Investigative Committee of the Board of Directors of the 10 Enron Corporation delivered its report ("The Report") to the 11 Board offering a substantive, detailed and devastating 12 critique of the role played by the Company's senior officers, 13 directors and outside professional advisors in the Enron 14 collapse; and 15 WHEREAS, The Report concluded that the Enron Board of 16 Directors played a role in facilitating the actions taken by 17 Company insiders to engage in transactions that hid Company 18 debt and inflated Company earnings, permitted activities that 19 were never adequately understood, examined or monitored and 20 which led to the lost of tens of millions of dollars from the 21 Company, permitted the participation in partnerships that 22 created a conflict of interest that led to many of the 23 problems that ultimately plagued the Company; and 24 WHEREAS, A board of directors is obligated to exercise a 25 fiduciary duty to protect public shareholders who invest 26 their money in a company's stock; and 27 WHEREAS, The Securities and Exchange Commission has the 28 Authority under the Securities Act of 1933, as amended, and 29 the Securities Exchange Act of 1934, as amended, to ask a 30 federal district court to issue a substantial unfitness bar 31 order; and -2- LRB9216097RHrh 1 WHEREAS, On February 4, 2002, the American Federation of 2 Labor and Congress of Industrial Organizations called upon 3 the Securities and Exchange Commission to open an 4 investigation into whether the directors of the Enron 5 Corporation, with the exception of William C. Powers, Jr. and 6 Raymond S. Troubh, are substantially fit to serve as either a 7 director or officer of another public corporation; therefore, 8 be it 9 RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE 10 NINETY-SECOND GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that 11 we call upon the Securities and Exchange Commission to open 12 an investigation into whether the directors of the Enron 13 Corporation, with the possible exception of William C. 14 Powers, Jr. and Raymond S. Troubh, are substantially fit to 15 serve as either a director or officer of another public 16 corporation; and be it further 17 RESOLVED, That a suitable copy of this resolution be sent 18 to the Securities and Exchange Commission.