[Reuters/Washington Post] Chris Baltimore - U.S. lawmakers on Wednesday introduced new legislation that would protect fund managers and state pension programs from shareholder lawsuits if they divest stakes in energy companies that do business with Iran. Rather than taking punitive action, the new legislation would authorize state and local governments and private fund-managers to divest assets for companies that invest over $20 million in Iran's energy sector, which the U.S. government would publish in a list every six months. The Iran Sanctions Enabling Act of 2007 was introduced in the Senate by Illinois Democrat Barack Obama and in the House of Representatives by Democratic Reps. Barney Frank and Tom Lantos. Fund managers that choose to divest could do so "without breaching their fiduciary responsibilities to their investors," and thus dodge class-action lawsuits from disapproving investors, Frank said. A report by the Library of Congress' Congressional Research Service found more than $100 billion in energy investments in Iran since 1999 by such foreign firms as France's Total, Royal Dutch Shell, Italy's ENI and Inpex of Japan.
2007-05-17 01:00:00Full ArticleBACK Visit the Daily Alert Archive