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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.