(a) Except as provided in subsections (c), (d), and (e) of this section, during the
period that a company on the scrutinized Company List has Active Business Operations,
the Public Fund shall sell, redeem, divest, or withdraw all publicly-traded securities
of the company according to the following schedule:
(1) At least 50% of the assets shall be removed from the Public Fund's assets under
management by 6 months after the company's most recent appearance on the Scrutinized
(2) All of such assets shall be removed from the Public Fund's assets under management
within 12 months after the company's most recent appearance on the Scrutinized Companies
(b) Except as provided in subsections (c), (d), and (e) of this section, the Public
Fund shall not acquire securities of companies on the Scrutinized Companies List that
have Active Business Operations.
(c) A company which the United States government affirmatively declares to be excluded
from its present or any future federal sanctions regime relating to Sudan shall not
be subject to the divestment or investment prohibition of subsections (a) and (b)
of this section.
(d) Notwithstanding anything herein to the contrary, subsections (a) and (b) of this
section shall not apply to Indirect Holdings in actively-managed investment funds;
provided, that the Public Fund shall submit letters to the managers of actively-managed
investment funds containing companies with Scrutinized Active Business Operations
requesting that they consider removing such companies from the fund or create a similar
actively-managed fund with Indirect Holdings devoid of such companies; provided further,
that if the manager creates a similar fund, the Public Fund shall replace all applicable
investments with investments in the similar fund in an expedited time period consistent
with prudent investing standards. For the purposes of this section, private equity funds shall be deemed to be actively-managed
(e) Notwithstanding the foregoing, the District of Columbia Retirement Board shall
comply with the requirements of this part only to the extent consistent with:
(1) Its fiduciary duties under Chapters 7 and 9 of this title; and
(2) Section 5 of the Sudan Accountability and Divestment Act of 2007, approved December
31, 2007 (121 Stat. 2516; 50 U.S.C. § 1701, note).
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