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| 1 | AN ACT concerning business.
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| 2 | Be it enacted by the People of the State of Illinois,
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| 3 | represented in the General Assembly:
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| 4 | Section 5. The Business Corporation Act of 1983 is amended | ||||||
| 5 | by changing Section 2.35 as follows:
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| 6 | (805 ILCS 5/2.35) (from Ch. 32, par. 2.35)
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| 7 | Sec. 2.35. Meetings of the board of directors of a | ||||||
| 8 | residential
cooperative corporation containing 24 or more | ||||||
| 9 | units shall be open to any
residential shareholder, except for | ||||||
| 10 | the portion of any meeting held (i) to
discuss litigation when | ||||||
| 11 | an action against or on behalf of the
corporation has been | ||||||
| 12 | filed and is pending in a court or administrative
tribunal, or | ||||||
| 13 | when the board of directors finds that such an action is
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| 14 | probable or imminent, (ii) to consider information regarding | ||||||
| 15 | appointment,
employment or dismissal of an employee, or (iii) | ||||||
| 16 | to discuss violations of
rules and regulations of the | ||||||
| 17 | corporation by a residential shareholder.
Any residential | ||||||
| 18 | shareholder
may record by tape, film or other means the | ||||||
| 19 | proceedings at such meetings or
portions thereof required to be
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| 20 | open by this Section. The board may prescribe
reasonable rules | ||||||
| 21 | and regulations to govern the right to make such
recordings. | ||||||
| 22 | Notice of such meetings shall be mailed or delivered at
least | ||||||
| 23 | 48 hours prior thereto, unless a written waiver of such notice | ||||||
| 24 | is
signed by the person or persons entitled to such notice | ||||||
| 25 | pursuant to the
articles of incorporation, bylaws, or other | ||||||
| 26 | instrument
before the meeting is convened. Copies
of notices of | ||||||
| 27 | meetings of the board of directors shall be posted in
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| 28 | entranceways, elevators, or other conspicuous places in the | ||||||
| 29 | residential
cooperative at least 48 hours prior to the meeting | ||||||
| 30 | of the board of
directors. If there is no common entranceway | ||||||
| 31 | for 7 or more
apartments, the board of directors may designate | ||||||
| 32 | one or more locations in
the proximity of such units where the | ||||||
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| 1 | notices of meetings shall be posted.
For purposes of this | ||||||
| 2 | Section, "meeting of the board of directors" means any
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| 3 | gathering of a quorum of the members of the board of directors | ||||||
| 4 | of the
residential cooperative held for the purpose of | ||||||
| 5 | discussing business of the
cooperative.
The provisions of this | ||||||
| 6 | Section shall apply to any residential cooperative
containing | ||||||
| 7 | 24 or more units situated in the State of Illinois regardless | ||||||
| 8 | of where
such cooperative may be incorporated.
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| 9 | (Source: P.A. 92-638, eff. 1-1-03.)
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| 10 | Section 10. The General Not For Profit Corporation Act of | ||||||
| 11 | 1986 is amended by changing Section 108.21 as follows:
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| 12 | (805 ILCS 105/108.21) (from Ch. 32, par. 108.21)
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| 13 | Sec. 108.21. Meetings of the board of directors of a | ||||||
| 14 | not-for-profit homeowners association or residential
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| 15 | cooperative not-for-profit corporation containing 24 or more | ||||||
| 16 | units
shall be open to any member, except for the portion of | ||||||
| 17 | any meeting held (i) to
discuss litigation when an action | ||||||
| 18 | against or on behalf of the
corporation has been filed and is | ||||||
| 19 | pending in a court or administrative
tribunal, or when the | ||||||
| 20 | board of directors finds that such an action is
probable or | ||||||
| 21 | imminent, (ii) to consider information regarding appointment,
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| 22 | employment or dismissal of an employee, or (iii) to discuss | ||||||
| 23 | violations of
rules and regulations of the corporation by a | ||||||
| 24 | residential shareholder.
Any member
may record by tape, film or | ||||||
| 25 | other means the proceedings at such meetings or
portions | ||||||
| 26 | thereof required to be
open by this Section. The board may | ||||||
| 27 | prescribe
reasonable rules and regulations to govern the right | ||||||
| 28 | to make such
recordings. Notice of such meetings shall be | ||||||
| 29 | mailed or delivered at
least 48 hours prior thereto, unless a | ||||||
| 30 | written waiver of such notice is
signed by the person or | ||||||
| 31 | persons entitled to such notice pursuant to the
articles of | ||||||
| 32 | incorporation, bylaws, other instrument
before the meeting is | ||||||
| 33 | convened. Copies
of notices of meetings of the board of | ||||||
| 34 | directors shall be posted in
entranceways, elevators, or other | ||||||
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| 1 | conspicuous places in the residential
cooperative at least 48 | ||||||
| 2 | hours prior to the meeting of the board of
directors. If there | ||||||
| 3 | is no common entranceway for 7 or more
units
apartments, the | ||||||
| 4 | board of directors may designate one or more locations in
the | ||||||
| 5 | proximity of such units where the notices of meetings shall be | ||||||
| 6 | posted.
For purposes of this Section, "meeting of the board of | ||||||
| 7 | directors" means any
gathering of a quorum of the members of | ||||||
| 8 | the board of directors of the
residential cooperative held for | ||||||
| 9 | the purpose of discussing business of the
homeowners | ||||||
| 10 | association or cooperative.
The provisions of this Section | ||||||
| 11 | shall apply to any homeowners association or residential | ||||||
| 12 | cooperative
containing 24 or more units
situated in the State | ||||||
| 13 | of Illinois regardless of where
it
such cooperative may be | ||||||
| 14 | incorporated.
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| 15 | (Source: P.A. 91-465, eff. 8-6-99; 92-638, eff. 1-1-03.)
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| 16 | Section 99. Effective date. This Act takes effect upon | ||||||
| 17 | becoming law. | ||||||