Sec. 26. (a) Except as provided in sections 28 and 29 of this chapter, if, after ninety (90) days after a fund's (before July 1, 2011) or the system's first engagement with a company under section 24 of this chapter, the company continues to have scrutinized active business operations, the fund (before July 1, 2011) or system shall sell, redeem, divest, or withdraw all publicly traded securities of the company that are held by a fund, as follows:
(1) At least fifty percent (50%) of such assets shall be removed from a fund's assets under management within nine (9) months after the company's appearance on the scrutinized company list.
(2) One hundred percent (100%) of such assets shall be removed from a fund's assets under management within fifteen (15) months after the company's appearance on the scrutinized company list.
(b) If a company that ceased scrutinized active business operations following engagement under section 24 of this chapter resumes scrutinized active business operations, and only while the company continues to have active business operations, the company shall immediately be placed back on the scrutinized company list. If a fund has holdings in the company, the fund (before July 1, 2011) or the system shall sell, redeem, divest, or withdraw all publicly traded securities of the company as provided in subsection (a) based on the date the company is placed back on the scrutinized company list. The fund (before July 1, 2011) or the system shall send a written notice to the company indicating that the company was placed back on the scrutinized company list and is subject to divestment.
(c) The board is not required to divest a fund's holdings in a passively managed commingled fund that includes a scrutinized company with active business operations in Sudan if the estimated cost of divestment of the commingled fund is greater than ten percent (10%) of the total value of the scrutinized companies with active business operations held in the commingled fund. The board shall include any commingled fund that includes a scrutinized company that is exempted from divestment under this subsection in the board's report submitted to the legislative council under section 31 of this chapter.
As added by P.L.149-2007, SEC.3. Amended by P.L.35-2012, SEC.59.
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