News Column

Treasurer Nappier Files Shareholder Resolution with Alliant Techsystems

February 25, 2014



HARTFORD, Conn., Feb. 25 -- The Connecticut Treasurer issued the following news release:

State Treasurer Denise L. Nappier today announced the filing of a shareholder resolution with Alliant Techsystems, Inc. that calls for the company to report on actions it has taken with respect to the Sandy Hook Principles, a set of measures aimed at curbing gun violence. The Connecticut Retirement Plans and Trust Funds ("CRPTF") joined with New York State Common Retirement Fund in filing the resolution.

"As a shareholder of Alliant, I call on the company to acknowledge and address the public safety issues arising from the misuse of guns and ammunition, and thereby lessen potential risk to investor value," Treasurer Nappier said.

Alliant Techsystems, through its Sporting Group division, manufactures and sells firearms and accessories for hunting, shooting and outdoor markets as well as sporting, law enforcement and military ammunition. The company has yet to respond to a September 2013 request from Treasurer Nappier to discuss the Sandy Hook Principles, leading to the filing of the shareholder resolution.

The Sandy Hook Principles were developed in January 2013 by Philadelphia Mayor Michael A. Nutter and later adopted by the National Conference of Mayors. The Principles are intended to encourage positive corporate behavior by gun and ammunition manufacturers, distributors and retailers by establishing a standard for responsible conduct and business practices.

Treasurer Nappier has written to Alliant Techsystems, and other companies that manufacture, distribute and sell guns, accessories and ammunition, raising the business case for reasonable regulation of firearms and ammunition sales, as well as company policies that would mitigate the potential long-term business risk posed by the harm attributable to the misuse of firearms.

Nappier stated, "Alliant Techsystems will enhance its long term shareholder value if it is seen as a reasonable public voice in the debate over the proper response to the Newtown massacre and, conversely, will suffer if the public perceives them as unwilling to consider reasonable voluntary measures, such as the Sandy Hook Principles, because of longstanding entrenched positions against gun control regulation."

As of February 17, CRPTF held 7,324 shares of Alliant Techsystems valued at $955,049 and fixed income investments of $756,875.

In the shareholder resolution, CRPTF urges Alliant's Board of Directors to report annually to shareholders, in a report posted on its website, on the actions the company has taken on six elements of the Sandy Hook Principles:

* Promoting restrictions on firearms and ammunition sales, transfers and possession to keep guns out of the hands of children, persons with mental illness or mental health challenges, criminals, domestic or international terrorists and anyone else prohibited from possessing them under federal law;

* Supporting the establishment of a federal universal background check system for every sale or transfer of guns or ammunition conducted by the company;

* Reevaluating policies regarding the sale, production, design or conversion of military style assault weapons for use by civilians, including the distribution of any materials/information that may be used to assist in such conversions;

* Taking steps to promote the conducting of background checks for every sale or transfer of guns or ammunition by business clients, including gun show operators or gun dealers.

* Supporting a federal gun trafficking statute to ensure stronger punishment for individuals engaging in the trade of selling firearms to anyone prohibited from possessing them under federal law; and

* Promoting gun safety education at the point of sale and in the communities in which the company conducts business operations.

Treasurer Nappier added, "We continue to remember those who lost their lives in the Sandy Hook tragedy and the families, friends and communities they left behind. I believe that the Newtown massacre compels us all to explore ways to prevent access to dangerous weapons and ammunition by those who would misuse them."

The resolution will be considered at the company's 2014 annual meeting, which has not yet been scheduled.

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Source: Targeted News Service


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