State Codes and Statutes

Statutes > North-carolina > Chapter_147 > GS_147-86_44

§ 147‑86.44.  Requiredactions.

(a)        General. – ThePublic Fund shall adhere to the procedure for Companies on the ScrutinizedCompanies List as provided in this section:

(b)        Engagement. –

(1)        The Public Fundshall immediately determine the Companies on the Scrutinized Companies List inwhich the Public Fund owns Direct or Indirect Holdings.

(2)        For each Companyidentified in subdivision (1) of this section with only Inactive BusinessOperations, the Public Fund shall send a written notice informing the Companyof this article and encouraging it to continue to refrain from initiatingActive Business Operations in Sudan until it is able to avoid ScrutinizedBusiness Operations. The Public Fund shall continue such correspondence on asemiannual basis.

(3)        For each Companynewly identified in subdivision (1) of this section with Active BusinessOperations, the Public Fund shall send a written notice informing the Companyof its Scrutinized Company status and that it may become subject to divestmentby the Public Fund. The notice shall offer the Company the opportunity toclarify its Sudan‑related activities and shall encourage the Company,within 90 days, to either cease its Scrutinized Business Operations or convertsuch operations to Inactive Business Operations in order to avoid qualifyingfor divestment by the Public Fund.

(4)        If, within 90 daysfollowing the Public Fund's first engagement with a Company pursuant tosubdivision (3) of this section that Company ceases Scrutinized BusinessOperations, the Company shall be removed from the Scrutinized Companies Listand the provisions of this Section shall cease to apply to it unless it resumesScrutinized Business Operations. If, within 90 days following the Public Fund'sfirst engagement, the Company converts its Scrutinized Active BusinessOperations to Inactive Business Operations, the Company shall be subject to allprovisions relating thereto.

(c)        Divestment. –

(1)        If, after 90 daysfollowing the Public Fund's first engagement with a Company pursuant to subdivision(b)(3) of this section, the Company continues to have Scrutinized ActiveBusiness Operations, and only while such Company continues to have ScrutinizedActive Business Operations, the Public Fund shall sell, redeem, divest, orwithdraw all publicly traded securities of the Company within 15 months afterthe Company's most recent appearance on the Scrutinized Companies List.

(2)        If a Company thatceased Scrutinized Active Business Operations following engagement pursuant tosubdivision (b)(3) of this section resumes such operations, subdivision (1) ofthis subsection shall immediately apply, and the Public Fund shall send awritten notice to the Company. The Company shall also be immediatelyreintroduced onto the Scrutinized Companies List.

(d)        Prohibition. – Atno time shall the Public Fund acquire securities of Companies on theScrutinized Companies List that have Active Business Operations, except asprovided below.

(e)        Exemption. – NoCompany which the United States Government affirmatively declares to beexcluded from its present or any future federal sanctions regime relating toSudan shall be subject to divestment or investment prohibition pursuant tosubsections (c) and (d) of this section.

(f)         ExcludedSecurities. – Notwithstanding anything herein to the contrary, subsections (c)and (d) of this section shall not apply to Indirect Holdings in activelymanaged investment funds. The Public Fund shall, however, submit letters to themanagers of such investment funds containing Companies with Scrutinized ActiveBusiness Operations requesting that they consider removing such Companies fromthe fund or create a similar actively managed fund with Indirect Holdingsdevoid of such Companies. If the manager creates a similar fund, the PublicFund shall replace all applicable investments with investments in the similarfund in an expedited time frame consistent with prudent investing standards.For the purposes of this section, "private equity" funds shall bedeemed to be actively managed investment funds. (2007‑486, s. 4.)

State Codes and Statutes

Statutes > North-carolina > Chapter_147 > GS_147-86_44

§ 147‑86.44.  Requiredactions.

(a)        General. – ThePublic Fund shall adhere to the procedure for Companies on the ScrutinizedCompanies List as provided in this section:

(b)        Engagement. –

(1)        The Public Fundshall immediately determine the Companies on the Scrutinized Companies List inwhich the Public Fund owns Direct or Indirect Holdings.

(2)        For each Companyidentified in subdivision (1) of this section with only Inactive BusinessOperations, the Public Fund shall send a written notice informing the Companyof this article and encouraging it to continue to refrain from initiatingActive Business Operations in Sudan until it is able to avoid ScrutinizedBusiness Operations. The Public Fund shall continue such correspondence on asemiannual basis.

(3)        For each Companynewly identified in subdivision (1) of this section with Active BusinessOperations, the Public Fund shall send a written notice informing the Companyof its Scrutinized Company status and that it may become subject to divestmentby the Public Fund. The notice shall offer the Company the opportunity toclarify its Sudan‑related activities and shall encourage the Company,within 90 days, to either cease its Scrutinized Business Operations or convertsuch operations to Inactive Business Operations in order to avoid qualifyingfor divestment by the Public Fund.

(4)        If, within 90 daysfollowing the Public Fund's first engagement with a Company pursuant tosubdivision (3) of this section that Company ceases Scrutinized BusinessOperations, the Company shall be removed from the Scrutinized Companies Listand the provisions of this Section shall cease to apply to it unless it resumesScrutinized Business Operations. If, within 90 days following the Public Fund'sfirst engagement, the Company converts its Scrutinized Active BusinessOperations to Inactive Business Operations, the Company shall be subject to allprovisions relating thereto.

(c)        Divestment. –

(1)        If, after 90 daysfollowing the Public Fund's first engagement with a Company pursuant to subdivision(b)(3) of this section, the Company continues to have Scrutinized ActiveBusiness Operations, and only while such Company continues to have ScrutinizedActive Business Operations, the Public Fund shall sell, redeem, divest, orwithdraw all publicly traded securities of the Company within 15 months afterthe Company's most recent appearance on the Scrutinized Companies List.

(2)        If a Company thatceased Scrutinized Active Business Operations following engagement pursuant tosubdivision (b)(3) of this section resumes such operations, subdivision (1) ofthis subsection shall immediately apply, and the Public Fund shall send awritten notice to the Company. The Company shall also be immediatelyreintroduced onto the Scrutinized Companies List.

(d)        Prohibition. – Atno time shall the Public Fund acquire securities of Companies on theScrutinized Companies List that have Active Business Operations, except asprovided below.

(e)        Exemption. – NoCompany which the United States Government affirmatively declares to beexcluded from its present or any future federal sanctions regime relating toSudan shall be subject to divestment or investment prohibition pursuant tosubsections (c) and (d) of this section.

(f)         ExcludedSecurities. – Notwithstanding anything herein to the contrary, subsections (c)and (d) of this section shall not apply to Indirect Holdings in activelymanaged investment funds. The Public Fund shall, however, submit letters to themanagers of such investment funds containing Companies with Scrutinized ActiveBusiness Operations requesting that they consider removing such Companies fromthe fund or create a similar actively managed fund with Indirect Holdingsdevoid of such Companies. If the manager creates a similar fund, the PublicFund shall replace all applicable investments with investments in the similarfund in an expedited time frame consistent with prudent investing standards.For the purposes of this section, "private equity" funds shall bedeemed to be actively managed investment funds. (2007‑486, s. 4.)


State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_147 > GS_147-86_44

§ 147‑86.44.  Requiredactions.

(a)        General. – ThePublic Fund shall adhere to the procedure for Companies on the ScrutinizedCompanies List as provided in this section:

(b)        Engagement. –

(1)        The Public Fundshall immediately determine the Companies on the Scrutinized Companies List inwhich the Public Fund owns Direct or Indirect Holdings.

(2)        For each Companyidentified in subdivision (1) of this section with only Inactive BusinessOperations, the Public Fund shall send a written notice informing the Companyof this article and encouraging it to continue to refrain from initiatingActive Business Operations in Sudan until it is able to avoid ScrutinizedBusiness Operations. The Public Fund shall continue such correspondence on asemiannual basis.

(3)        For each Companynewly identified in subdivision (1) of this section with Active BusinessOperations, the Public Fund shall send a written notice informing the Companyof its Scrutinized Company status and that it may become subject to divestmentby the Public Fund. The notice shall offer the Company the opportunity toclarify its Sudan‑related activities and shall encourage the Company,within 90 days, to either cease its Scrutinized Business Operations or convertsuch operations to Inactive Business Operations in order to avoid qualifyingfor divestment by the Public Fund.

(4)        If, within 90 daysfollowing the Public Fund's first engagement with a Company pursuant tosubdivision (3) of this section that Company ceases Scrutinized BusinessOperations, the Company shall be removed from the Scrutinized Companies Listand the provisions of this Section shall cease to apply to it unless it resumesScrutinized Business Operations. If, within 90 days following the Public Fund'sfirst engagement, the Company converts its Scrutinized Active BusinessOperations to Inactive Business Operations, the Company shall be subject to allprovisions relating thereto.

(c)        Divestment. –

(1)        If, after 90 daysfollowing the Public Fund's first engagement with a Company pursuant to subdivision(b)(3) of this section, the Company continues to have Scrutinized ActiveBusiness Operations, and only while such Company continues to have ScrutinizedActive Business Operations, the Public Fund shall sell, redeem, divest, orwithdraw all publicly traded securities of the Company within 15 months afterthe Company's most recent appearance on the Scrutinized Companies List.

(2)        If a Company thatceased Scrutinized Active Business Operations following engagement pursuant tosubdivision (b)(3) of this section resumes such operations, subdivision (1) ofthis subsection shall immediately apply, and the Public Fund shall send awritten notice to the Company. The Company shall also be immediatelyreintroduced onto the Scrutinized Companies List.

(d)        Prohibition. – Atno time shall the Public Fund acquire securities of Companies on theScrutinized Companies List that have Active Business Operations, except asprovided below.

(e)        Exemption. – NoCompany which the United States Government affirmatively declares to beexcluded from its present or any future federal sanctions regime relating toSudan shall be subject to divestment or investment prohibition pursuant tosubsections (c) and (d) of this section.

(f)         ExcludedSecurities. – Notwithstanding anything herein to the contrary, subsections (c)and (d) of this section shall not apply to Indirect Holdings in activelymanaged investment funds. The Public Fund shall, however, submit letters to themanagers of such investment funds containing Companies with Scrutinized ActiveBusiness Operations requesting that they consider removing such Companies fromthe fund or create a similar actively managed fund with Indirect Holdingsdevoid of such Companies. If the manager creates a similar fund, the PublicFund shall replace all applicable investments with investments in the similarfund in an expedited time frame consistent with prudent investing standards.For the purposes of this section, "private equity" funds shall bedeemed to be actively managed investment funds. (2007‑486, s. 4.)

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