State of Illinois
92nd General Assembly
Legislation

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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.

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