Goldman Sachs called on to correct statement made at annual meeting; Shareholders request CEO to reimburse Goldman Sachs
For more info contact: Steve Milloy, 301-258-2852, steve@feafund.com
Washington DC (PR Newswire) April 6, 2006 – Action Fund Management LLC (AFM), investment adviser to the Free Enterprise Action Fund (www.FreeEnterpriseActionFund.com), called on Goldman Sachs today to correct a statement made at its annual meeting and requested that CEO Henry M. Paulson, Jr. reimburse the company for any shareholder assets spent to advance his personal interests.
In response to a shareholder resolution presented at the meeting by Peter Flaherty of the National Legal and Policy Center (www.nlpc.org), Goldman Sachs’ board member John Bryant responded, in part, by denying that the Nature Conservancy – whose chairman is Goldman CEO Paulson – was involved in the Goldman Sachs donation of 680,000 acres in Chile to the Wildlife Conservation Society.
“The Nature Conservancy’s tax return for 2004 states that Goldman Sachs paid the environmental group $144,895 between August 2003 and June 2004 for consulting services related to the Chilean land deal,” said Steve Milloy of AFM. “When I pointed that fact at the Goldman Sachs shareholder meeting last week, my comment was met with silence by Mr. Bryan and the rest of Goldman Sachs’ board.”
“The board’s denial of facts that are contained in federal records underscores the need for a thorough and independent review of the land deal – the sort of review already requested in a letter from us to Goldman’s board in January and the shareholder resolution presented at the meeting,” said AFM’s Tom Borelli.
“Another aspect of the Chilean land deal that we’re interested in is why the donation was made, as evidenced by the group’s tax return, from a Goldman Sachs partnership through the Goldman Sachs Charitable Fund – a non-profit charity previously focused on providing scholarships, according to its tax returns – rather than directly to the donee, the Wildlife Conservation Society,” stated Milloy.
“As shareholders, we have a lot of questions,” said Tom Borelli. “But Goldman has not provided substantive responses, either to our letters or at the shareholder meeting.
CEO Paulson announced on April 3 – the next business day after the March 31 shareholder meeting – that he was transferring 637,000 shares of his own Goldman Sachs stock to a charitable foundation he established to donate to environmental causes.(1)
“Mr. Paulson seems to have gotten the message that shareholder assets ought not to be used for his environmental interests that he has previously acknowledged to be purely personal,” said Borelli. “But we still want to know what happened on the Chilean land deal.”
“If it turns out that shareholder assets were expended in pursuit of his personal goals, we request that CEO Paulson reimburse Goldman Sachs and its shareholders,” added Milloy.
The Free Enterprise Action Fund (FEAF) is a mutual fund seeking to provide investors with financial returns while defending and advocating for the American system of free enterprise. The FEAF owns less than one percent of the outstanding shares of Goldman Sachs.
The Free Enterprise Action Fund seeks long-term capital appreciation through investment and advocacy that promote the American system of free enterprise. An investor should consider the fund's investment objectives, risks, and charges and expenses carefully before investing or sending money. This and other important information about the Free Enterprise Action Fund can be found in the fund's prospectus. To obtain a prospectus, please call 1-800-766-3960 or visit www.FreeEnterpriseActionFund.com. Please read the prospectus carefully before investing.
Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes. The Free Enterprise Action Fund is a new fund with limited investment history and there is no guarantee that it will achieve its investment objectives.
The Free Enterprise Action Fund is advised by Action Fund Management, LLC., which receives a fee for its services, and is distributed by BISYS Fund Services Limited Partnership, which is not affiliated with Action Fund Management, LLC.
References:
- New York Post, Hank Gives Green (April 4, 2006).
The Free Enterprise Action Fund seeks long-term capital appreciation through investment and advocacy that promote the American system of free enterprise.
An investor should consider the fund's investment objectives, risks, and charges and expenses carefully before investing or sending money. This and other important information about the Free Enterprise Action Fund can be found in the fund's prospectus. To obtain a prospectus, please call 1-800-766-3960 or click here. Please read the prospectus carefully before investing.
Mutual fund investing involves risk, including loss of principal.
The Free Enterprise Action Fund is advised by Action Fund Management, LLC., which receives a fee for its services, and is distributed by BISYS Fund Services, LP, which is not affiliated with Action Fund Management, LLC.
