90th General Assembly
Summary of SB1020
   [ Home ]   [ Back ]   [ Legislation ]
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Senate Sponsors:
DILLARD.

House Sponsors:
RYDER-BIGGERT

Short description: 
UNIFORM LIMITED LIABILITY CO                                               

Synopsis of Bill as introduced:
        Creates  the  Uniform  Limited  Liability  Company  Act   (1995).      
   Provides  for  the  organization  and  operation  of limited liability      
   companies.  Applies, with certain exceptions, to all limited liability      
   companies formed after December  31,  1997.   Provides  that  existing      
   limited  liability  companies  may  elect  to  be subject to this Act.      
   Amends the Illinois Income Tax Act to make conforming changes. Amends       
   the Limited Liability Company Act to provide for its repeal on January      
   1, 2003.  Effective January 1, 1998.                                        
        SENATE AMENDMENT NO. 1.                                                
          Deletes reference to:                                                
          New Act                                                              
          35 ILCS 5/1501                                                       
          805 ILCS 180/Art. 57 heading new                                     
          805 ILCS 180/57-1 new                                                
          805 ILCS 180/57-5 new                                                
          Adds reference to:                                                   
          205 ILCS 620/1-5.09             from Ch. 17, par. 1551-5.09          
          205 ILCS 620/1-5.11             from Ch. 17, par. 1551-5.11          
          205 ILCS 620/1-6                from Ch. 17, par. 1551-6             
          205 ILCS 620/3-2                from Ch. 17, par. 1553-2             
          805 ILCS 5/11.39 new                                                 
          805 ILCS 180/1-5                                                     
          805 ILCS 180/1-10                                                    
          805 ILCS 180/1-25                                                    
          805 ILCS 180/1-30                                                    
          805 ILCS 180/1-35                                                    
          805 ILCS 180/1-40                                                    
          805 ILCS 180/1-43 new                                                
          805 ILCS 180/5-1                                                     
          805 ILCS 180/5-5                                                     
          805 ILCS 180/5-15                                                    
          805 ILCS 180/5-25                                                    
          805 ILCS 180/5-45                                                    
          805 ILCS 180/5-50                                                    
          805 ILCS 180/10-1                                                    
          805 ILCS 180/10-10                                                   
          805 ILCS 180/10-15                                                   
          805 ILCS 180/Art. 13 heading new                                     
          805 ILCS 180/13-5 new                                                
          805 ILCS 180/13-10 new                                               
          805 ILCS 180/15-1                                                    
          805 ILCS 180/15-3 new                                                
          805 ILCS 180/15-5                                                    
          805 ILCS 180/15-7 new                                                
          805 ILCS 180/15-20 new                                               
          805 ILCS 180/20-5                                                    
          805 ILCS 180/Art. 25 heading                                         
          805 ILCS 180/25-1                                                    
          805 ILCS 180/25-30 new                                               
          805 ILCS 180/25-35 new                                               
          805 ILCS 180/25-45 new                                               
          805 ILCS 180/25-50 new                                               
          805 ILCS 180/30-1                                                    
          805 ILCS 180/30-5                                                    
          805 ILCS 180/30-10                                                   
          805 ILCS 180/30-20                                                   
          805 ILCS 180/Art. 35 heading                                         
          805 ILCS 180/35-1                                                    
          805 ILCS 180/35-3 new                                                
          805 ILCS 180/35-4 new                                                
          805 ILCS 180/35-7 new                                                
          805 ILCS 180/35-10                                                   
          805 ILCS 180/35-20                                                   
          805 ILCS 180/35-30                                                   
          805 ILCS 180/35-45 new                                               
          805 ILCS 180/35-50 new                                               
          805 ILCS 180/35-55 new                                               
          805 ILCS 180/35-60 new                                               
          805 ILCS 180/35-65 new                                               
          805 ILCS 180/35-70 new                                               
          805 ILCS 180/Art. 37 heading new                                     
          805 ILCS 180/37-5 new                                                
          805 ILCS 180/37-10 new                                               
          805 ILCS 180/37-15 new                                               
          805 ILCS 180/37-20 new                                               
          805 ILCS 180/37-25 new                                               
          805 ILCS 180/37-30 new                                               
          805 ILCS 180/37-35 new                                               
          805 ILCS 180/40-1                                                    
          805 ILCS 180/40-5                                                    
          805 ILCS 180/45-1                                                    
          805 ILCS 180/45-5                                                    
          805 ILCS 180/45-35                                                   
          805 ILCS 180/45-65 new                                               
          805 ILCS 180/50-1                                                    
          805 ILCS 180/50-10                                                   
          805 ILCS 180/50-15                                                   
          805 ILCS 180/55-15 new                                               
          805 ILCS 180/60-1                                                    
          805 ILCS 180/1-45 rep.                                               
          805 ILCS 180/5-20 rep.                                               
          805 ILCS 180/10-5 rep.                                               
          805 ILCS 180/20-10 rep.                                              
          805 ILCS 180/20-15 rep.                                              
          805 ILCS 180/25-5 rep.                                               
          805 ILCS 180/25-10 rep.                                              
          805 ILCS 180/25-15 rep.                                              
          805 ILCS 180/25-25 rep.                                              
          805 ILCS 180/30-15 rep.                                              
          805 ILCS 180/35-5 rep.                                               
          805 ILCS 180/35-35 rep.                                              
          805 ILCS 205/7.1 new                                                 
          805 ILCS 205/7.2 new                                                 
          805 ILCS 210/210 new                                                 
          805 ILCS 210/211 new                                                 
        Deletes everything.  Amends the Corporate Fiduciary  Act  to  add      
   limited  liability companies to the definitions of "person" and "trust      
   company" and a provision concerning general  corporate  powers.   Adds      
   membership  interests  to  provisions  concerning a change in control.      
   Amends the Limited Liability Company Act, the Business Corporation Act      
   of 1983, the Uniform Partnership Act, and the Revised Uniform  Limited      
   Partnership  Act  in  relation  to  mergers  with and conversions into      
   limited liability companies.  Amends the Limited Liability Company Act      
   in relation to definitions, a company's name, the nature of  business,      
   powers,   records,   supplemental  principles  of  law,  organization,      
   articles  of  organization,  amendment  by   managers,   articles   of      
   amendment,  filing  an  authorization,  amendment  or  dissolution  by      
   judicial act, admission of members, liability of members and managers,      
   the  right to information, the agency of members and managers, company      
   liability, management, standards of conduct, the operating  agreement,      
   the right to payments and reimbursement, actions by members, liability      
   for  contributions, distributions, claims against a dissolved company,      
   distributional  interests,  rights  of  a  transferee,  rights  of   a      
   creditor,  dissolution,  a  member's  dissociation, a right of action,      
   proper  plaintiffs,  the  law  governing  and  admission  of   foreign      
   liability  companies,  annual  reports,  fees, penalties, transitional      
   provisions, and the effective  date.  Repeals  certain  provisions  in      
   relation  to  a  member's  business  transactions  with  the  company,      
   amendment   by   managers   and   members,   decisions   of   members,      
   indemnification,   sharing   of  profits  and  losses,  distributions,      
   resignation  of  a  member,  substituted  members,  and   dissolution.      
   Effective January 1, 1998.                                                  
        SENATE AMENDMENT NO. 2.                                                
          Adds reference to:                                                   
          805 ILCS 180/150-10 rep.                                             
        Provides that an operating  agreement  may  determine  whether  a      
   dissociation  is wrongful, and it may eliminate or vary the obligation      
   of the limited liability company to purchase the dissociated  member's      
   distributional interest (instead of allowing the agreement to restrict      
   the  right  of  a  member  to dissociate and to restrict or modify the      
   obligation  of  the  company  to  purchase  the  dissociated  member's      
   interest).  Provides an  exception  to  the  provisions  concerning  a      
   limited  liability  company being dissolved and requiring its business      
   to be wound up upon the occurrence of  certain  events  for  when  the      
   members  unanimously  waive  the  right to have the company's business      
   wound up and the company terminated.  Provides that upon the filing of      
   the articles of  dissolution,  the  existence  of  the  company  shall      
   terminate  (instead  of cease).  Provides that the manager or managers      
   at the time of termination (instead of dissolution) shall  be  trustee      
   for the members and creditors.  Provides that the member or members at      
   the  time  of  termination  shall  be  trustee  for  the  members  and      
   creditors.   Provides that upon a member's dissociation from a limited      
   liability company, the member's fiduciary duties terminate (instead of      
   the member's duty of  loyalty  to  refrain  from  competing  with  the      
   company  before  the  dissolution  of the company terminates). Further      
   amends  the  Limited  Liability  Company  Act  to  repeal   provisions      
   concerning  indemnification  of  managers,  employees  and  agents and      
   insurance.                                                                  
        HOUSE AMENDMENT NO. 1.                                                 
          Adds reference to:                                                   
          805 ILCS 5/13.05                from Ch. 32, par. 13.05              
        Provides  that  a  corporation  or  limited   liability   company      
   organized  for the practice of medicine or dentistry may not be merged      
   or admitted to transact business in this State  unless  the  ownership      
   interests  are  owned  only  by individuals who are licensed under the      
   Medical Practice Act of 1987 or the Illinois Dental Practice  Act,  as      
   the case may be.                                                            
          STATE MANDATES FISCAL NOTE, H-AM 1 (DCCA)                            
          SB 1020 fails to create a State mandate.                             
        HOUSE AMENDMENT NO. 2.                                                 
        Provides that a corporation or limited liability company may  not      
   operate  in  this State unless the owners have the authority to engage      
   in the business or comply  with  the  ownership  requirements  of  the      
   Professional Service Corporation Act.                                       
 
Last action on Bill: PUBLIC ACT.............................. 90-0424

   Last action date: 97-08-15

           Location: Senate

 Amendments to Bill: AMENDMENTS ADOPTED: HOUSE -   2     SENATE -   2


   END OF INQUIRY 
                                                                               



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