GE Loses Bid to Block Global Warming Shareholder Resolution; Mutual Fund Calls On GE to Stop Advocating Global Warming Regulation

Feb 01, 2006, 00:00 ET from Free Enterprise Action Fund

    WASHINGTON, Feb. 1 /PRNewswire/ -- In the wake of General Electric's
 failure to block a shareholder resolution requesting that GE justify its
 support for global warming regulation, Action Fund Management LLC (AFM),
 investment adviser to the Free Enterprise Action Fund
 ( ), called on GE to stop advocating global
 warming regulation.
     On January 17, 2006, the U.S. Securities and Exchange Commission denied
 GE's request to exclude a resolution filed by AFM principal Thomas Borelli
 requesting GE "to report to shareholders on the scientific and economic
 analyses relevant to GE's climate change policy [announced in May 2005]." (1-
     "We persuaded the SEC staff to reject all of GE's arguments for excluding
 our proposal from its 2006 proxy materials," said Borelli. "Now GE
 shareholders will have the opportunity to request that GE justify its global
 warming policy in scientific and economic terms," added Borelli.
     "Our opposition to global warming alarmism is based on three points," said
 AFM's Steve Milloy. (3) "First, we don't believe the available scientific data
 indicate that human activity is measurably changing global climate - history
 shows that natural climate change can be far more significant than any slight
 change in climate that may have occurred over the last 200 years."
     "Second, even if human activity is altering global climate to some extent,
 such climate change might actually be beneficial - historically, civilization
 has fared better in warmer climatic conditions as opposed to cooler climatic
     "Third, even if humans are undesirably affecting global climate, the best
 path forward may be adaptation to that climate change rather than harming the
 global economy through the expenditure of hundreds of billion dollars under
 the questionable rationale that greenhouse gas regulation can act as some sort
 of global thermostat."
     "The bottom line is that we believe GE's support of, and advocacy for,
 global warming regulation may harm GE shareholders in the long run," Borelli
 pointed out. "GE's policies should be based on sound science and economics not
 public relations campaigns or capitulation to pressure from environmental
 activists. GE's future is tied to a growing global economy that depends on the
 availability of affordable energy. Global warming regulation, we believe, will
 make energy less available and more expensive, thereby harming the economy and
 ultimately GE's business prospects," explained Borelli.
     "We're not sure GE's management performed the necessary due diligence
 before embracing the global warming hypothesis," said Milloy. "We asked
 management for its global warming assessment but management never responded to
 our request. We hope shareholders will take advantage of our resolution and
 send GE CEO Jeff Immelt the message that company policy on global warming must
 be supported by factual analysis, not executive bias." (4)
     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 GE.
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 through investment and advocacy that promote the American system of free
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 This and other important information about the Free Enterprise Action Fund can
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 766-3960 or visit Please read the prospectus
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     1. Letter from U.S. Securities and Exchange Commission, Office of Chief
 Counsel to Ronald O. Mueller, Gibson, Dunn & Crutcher LLP, Re: General
 Electric Company, Incoming Letter Dated December 9, 2005 (January 17, 2006).
     2. Free Enterprise Action Fund, "GE Urged to Stop Opposing Shareholder
 Resolution on Global Warming Science, PR Web (January 12, 2005),
     3. Id.
     4. Free Enterprise Action Fund, "Free Enterprise Action Fund Questions GE
 Decision To Side With Global Warming Activists," PR Web (September 14, 2005),

SOURCE Free Enterprise Action Fund