【正文】 :73N)J%GCWySuOqhnd 9。GCWyTvPrhnd 9:62=M(I$FZBVxRtjqgmc `1+L*H!DXAUwQsioe kb^73N)Jamp。5~2=M$EYAUwQsjpflb^73`0Kamp。GCWySuPrhnd 9。5~1+L*H!EYAUwQsioflb^730Kamp。5~1+L*I$EYAUwQsjpflb^74`0Kamp。5~1+M(I$EYAUwRtjpflb^`0Kamp。52=M(I$EZBVxRtjpfmc `0L*H!DXzTwQsioe ka:73N)J%GCWySuOqhnd 9。GCWyTvPrhnd 9:62=M(I$FZBVxRtjqgmc `1+L*H!DXAUwQsioe kb^73N)Jamp。5~1+L*H$EYAUwQsjpflb^73`0Kamp。5~1+L(I$EYAUwQtjpflb^`0Kamp。5~1+L*H!EYAUwQsipflb^730Kamp。5~1+L*I$EYAUwQsjpflb^74`0Kamp。5~1+M(I$EYAUwRtjpflb^`0Kamp。52=M(I$EZBVxRtjpfmc `0+L*H!DXzTwQsioe ka:7 3N)J%GCWySuOqhnd 9。GCWyTvPrhnd 9:62=M(I%FZBVxRtjqgmc `1+L*H!DXAUwQsioe kb^73N)Kamp。5~1+L*H$EYAUwQsjpflb^73`0Kamp。5~1+L(I$EYAUwRtjpflb^`0Kamp。5~1=M(I$EYAUxRtjpflb `0Kamp。GCWySuOrhnd 9。GCW zTvPrhnd a:62=M(J%FZBVxRtOqgmc ~1+L*H!DYAUwQsioelb^73NKamp。GDX zTvPrhne ka:6 2=N)J%FZBV xSuOqgmc 8。H!DX zT vPrioeka:62N)J% FZBWySuOqgmc 9。GCX zTvPrhndka:62=M(J%FZBVxjpflc `0K*H!DXzTvQsioe ka:63N)J% FCWySuOqgnd 9。GDX zT vPrhoe ka:62=N)J% FZBVySuOqgmc 9。H!DXzTvPsioeka:63N)J% FZBWySuOqgmd 9。52=M(I$EYBVxRtjpfmc `0L*H!DXzTvQsioe ka:73N)J% FCWySuOqhnd 9。GCWySvPrhnd 9:62=M(I$FZBVxRtjpgmc `1+L*H!DXzUwQsioe kb^7 3N)Jamp。 low value。 ? With the care, skill, prudence and due diligence, which under the circumstances, a prudent man would act in similar circumstances。Pros and Cons of Internal vs. External ESOP Trustees—Post Enron GreatBanc Trust Company 45 Rockefeller Plaza, Suite 2056 New York, NY 101112022 Karen Bonn, Vice President (212) 3323251 2 Trustee must act: ? Solely in the interest of participants and beneficiaries。 ? For the exclusive purpose of providing benefits and defraying expenses of administering the plan。 and ? In accordance with the plan, as long as the plan and trust are consistent with ERISA 3 Prudence Duty ? Courts likely to defer to the judgment of an independent and experienced trustee unless the trustee acted in an ―arbitrary or capricious‖ manner ? Procedural diligence, not substantive perfection ? Avoid acting in an ―arbitrary or capricious‖ manner – Trustee is familiar with plan documents and applicable legal standards – Trustee relies on plan documents and applicable legal standards – Trustee documents diligence, reasoning and decisions 4 Liability for Another Fiduciary ? May not delegate fiduciary duties, but plan may allocate duties among separate fiduciaries ? Except in ―aiding and abetting‖ situations, fiduciary not liable for breach by cofiduciary of allocated responsibilities ? Knowing participation in, or concealment of, an act or omission known to be a breach ? Enabling another fiduciary to breach by breaching one’s own fiduciary duty 5 Liability for Another Fiduciary (cont.) ? Knowing of a breach and failing to make reasonable efforts to remedy the breach ? Basic principle: silence in the face of a breach is not acceptable ―reasonable efforts‖ to remedy the breach are required 6 Duties of the Trustee ? Analyze proposed transactions ? Vote employer securities ? Diversification ? Annual valuation ? Communications 7 Analysis of Proposed Transaction ? Independently negotiate price and terms on behalf of participants ? Investigate solvency of the corporation ? Engage in a diligent, independent investigation ? Engage advisors and scrutinize findings 8 Voting Employer Securities ? May follow directions to the extent doing so does not violate ERISA ? Trustee fiduciary responsibilities may not be delegated ? Follow plan document 9 Electing Board of Directors ? Review biographies ? Interview members ? Draft letter to participants requesting direction ? Co