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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 Sections 7.05, 11.39, 15.10, 15.35, and 15.97 and | ||||||
6 | by adding Section 14.13 as follows:
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7 | (805 ILCS 5/7.05) (from Ch. 32, par. 7.05)
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8 | Sec. 7.05. Meetings of shareholders. Meetings of | ||||||
9 | shareholders may be held either within or
without
this State, | ||||||
10 | as may be provided in the by-laws or in a resolution of the
| ||||||
11 | board of directors pursuant to authority granted in the | ||||||
12 | by-laws. In the
absence of any such provision, all meetings | ||||||
13 | shall be held at the principal registered
office of the | ||||||
14 | corporation in this State.
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15 | An annual meeting of the shareholders shall be held at | ||||||
16 | such time as may
be provided in the by-laws or in a resolution | ||||||
17 | of the board of directors
pursuant to authority granted in the | ||||||
18 | by-laws. Failure to hold the annual
meeting at the designated | ||||||
19 | time shall not work a forfeiture or dissolution
of the | ||||||
20 | corporation nor affect the validity of corporate action. If an | ||||||
21 | annual
meeting has not been held within the earlier of 6 six | ||||||
22 | months after the end
of the corporation's fiscal year or 15 | ||||||
23 | fifteen months after its last annual
meeting and if, after a |
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1 | request in writing directed to the president of
the | ||||||
2 | corporation, a notice of meeting is not given within 60 days of | ||||||
3 | such
request, then any shareholder entitled to vote at an | ||||||
4 | annual meeting may
apply to the circuit court of the county in | ||||||
5 | which the registered office
or principal place of business of | ||||||
6 | the corporation is located for an order
directing that the | ||||||
7 | meeting be held and fixing the time and place of the
meeting. | ||||||
8 | The court may issue such additional orders as may be necessary
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9 | or appropriate for the holding of the meeting.
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10 | Unless specifically prohibited by the articles of | ||||||
11 | incorporation or by-laws,
a corporation may allow shareholders | ||||||
12 | to participate in and act at any meeting
of the shareholders by | ||||||
13 | means of remote communication, including, but not limited to,
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14 | through the use of a conference telephone or interactive | ||||||
15 | technology, including
but not limited to electronic | ||||||
16 | transmission, or Internet usage, or remote
communication, by | ||||||
17 | means of which all persons participating in the meeting can
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18 | communicate with each other. Shareholders participating in a | ||||||
19 | shareholders' meeting by means of remote communication shall | ||||||
20 | be deemed present and may vote at such a meeting if the | ||||||
21 | corporation has implemented reasonable measures: | ||||||
22 | (1) to verify that each person participating remotely | ||||||
23 | as a shareholder is a shareholder; and | ||||||
24 | (2) to provide to such shareholders a reasonable | ||||||
25 | opportunity to participate in the meeting and to vote on | ||||||
26 | matters submitted to the shareholders, including the |
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1 | opportunity to communicate and to read or hear the | ||||||
2 | proceedings of the meeting. | ||||||
3 | A shareholder entitled to vote at a meeting of the | ||||||
4 | shareholders shall be permitted to attend the meeting | ||||||
5 | where space permits (in the case of a meeting at a place) , | ||||||
6 | and subject to the corporation's by-laws and rules | ||||||
7 | governing the conduct of the meeting and the power of the | ||||||
8 | chairman to regulate the orderly conduct of the meeting. | ||||||
9 | Participation in such meeting shall constitute
attendance | ||||||
10 | and presence in person at the meeting of the person or | ||||||
11 | persons so
participating.
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12 | Special meetings of the shareholders may be called by the | ||||||
13 | president, by
the board of directors, by the holders of not | ||||||
14 | less than one-fifth of all
the outstanding shares entitled to | ||||||
15 | vote on the matter for which the meeting
is called or by such | ||||||
16 | other officers or persons as may be provided in the
articles of | ||||||
17 | incorporation or the by-laws. | ||||||
18 | Only business within the purpose or purposes described in | ||||||
19 | the meeting notice required by Section 7.15 of this Act may be | ||||||
20 | conducted at a special meeting of shareholders.
Unless the | ||||||
21 | by-laws require the meeting of shareholders to be held at a | ||||||
22 | place, the board of directors may determine that any meeting | ||||||
23 | of the shareholders shall not be held at any place and shall | ||||||
24 | instead be held solely by means of remote communication, but | ||||||
25 | only if the corporation implements the measures specified in | ||||||
26 | items (1) and (2) of this Section.
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1 | (Source: P.A. 94-655, eff. 1-1-06.)
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2 | (805 ILCS 5/11.39)
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3 | Sec. 11.39.
Merger of domestic corporation and limited | ||||||
4 | liability entities
company .
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5 | (a) Any one or more domestic corporations may merge with | ||||||
6 | or into one
or more limited liability entities companies of | ||||||
7 | this State, any other state or
states of the
United States, or | ||||||
8 | the District of Columbia, if the laws of the other state
or | ||||||
9 | states
or the District of Columbia permit the merger. The | ||||||
10 | domestic corporation or
corporations and the limited liability | ||||||
11 | entity or entities company or companies may merge with or
into | ||||||
12 | a corporation, which may be any one of these corporations, or | ||||||
13 | they may
merge
with or into a limited liability entity | ||||||
14 | company , which may be any one of these limited
liability | ||||||
15 | entities
companies , which shall be a domestic corporation or | ||||||
16 | limited liability entity company
of this
State, any other | ||||||
17 | state of the United States, or the District of Columbia,
which
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18 | permits the merger pursuant to a plan of merger complying with | ||||||
19 | and approved in
accordance with this Section.
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20 | (b) The plan of merger must set forth the following:
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21 | (1) The names of the domestic corporation or | ||||||
22 | corporations and limited
liability entity or entities | ||||||
23 | company or companies proposing to merge and the name of | ||||||
24 | the domestic
corporation or limited liability entity | ||||||
25 | company into which they propose to merge,
which is
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1 | designated as the surviving entity.
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2 | (2) The terms and conditions of the proposed merger | ||||||
3 | and the mode of
carrying the same into effect.
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4 | (3) The manner and basis of converting the shares of | ||||||
5 | each
domestic corporation and the interests of each | ||||||
6 | limited liability entity company
into
shares, interests, | ||||||
7 | obligations, other securities of the surviving entity or
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8 | into cash or
other property or any combination of the | ||||||
9 | foregoing.
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10 | (4) In the case of a merger in which a domestic | ||||||
11 | corporation is the
surviving entity, a statement of any | ||||||
12 | changes in the articles of incorporation
of the
surviving | ||||||
13 | corporation to be effected by the merger.
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14 | (5) Any other provisions with respect to the proposed | ||||||
15 | merger that are
deemed necessary or desirable, including | ||||||
16 | provisions, if any, under which the
proposed merger may be | ||||||
17 | abandoned prior to the filing of the articles of merger
by
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18 | the Secretary of State of this State.
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19 | (c) The plan required by subsection (b) of this Section | ||||||
20 | shall be adopted and
approved
by the constituent corporation | ||||||
21 | or corporations in the same manner as is
provided in
Sections | ||||||
22 | 11.05, 11.15, and 11.20 of this Act and, in the case of a | ||||||
23 | limited
liability
entity company , in accordance with the terms | ||||||
24 | of its operating or partnership agreement, if any, and
in
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25 | accordance with the laws under which it was formed.
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26 | (d) Upon this approval, articles of merger shall be |
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1 | executed by each
constituent corporation and limited liability | ||||||
2 | entity company and filed with the
Secretary of State. The | ||||||
3 | merger shall become
effective for all purposes of the laws of | ||||||
4 | this State when and as provided in
Section
11.40 of this Act | ||||||
5 | with respect to the merger of corporations of this State.
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6 | (e) If the surviving entity is to be governed by the laws | ||||||
7 | of the District of
Columbia or any state other than this State, | ||||||
8 | it shall file with the
Secretary of
State of this State an | ||||||
9 | agreement that it may be served with process in this
State in
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10 | any proceeding for enforcement of any obligation of any | ||||||
11 | constituent corporation
or
limited liability entity company of | ||||||
12 | this State, as well as for enforcement of any
obligation of
the | ||||||
13 | surviving corporation or limited liability entity company | ||||||
14 | arising from the merger,
including any suit or other | ||||||
15 | proceeding to enforce the shareholders right to
dissent as
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16 | provided in Section 11.70 of this Act, and shall irrevocably | ||||||
17 | appoint the
Secretary of
State of this State as its agent to | ||||||
18 | accept service of process in any such suit
or other
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19 | proceedings.
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20 | (f) Section 11.50 of this Act shall, insofar as it is | ||||||
21 | applicable, apply to
mergers between domestic corporations and | ||||||
22 | limited liability entities companies .
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23 | (g) In any merger under this Section, the surviving entity | ||||||
24 | shall not
engage in any business or exercise any power that a | ||||||
25 | domestic corporation or
domestic limited liability entity | ||||||
26 | company may not otherwise engage in or exercise in
this State. |
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1 | Furthermore, the surviving entity shall be governed by the
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2 | ownership and control restrictions in Illinois law applicable | ||||||
3 | to that type of
entity.
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4 | (Source: P.A. 96-1121, eff. 1-1-11.)
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5 | (805 ILCS 5/14.13 new) | ||||||
6 | Sec. 14.13. Report of interim changes of domestic or | ||||||
7 | foreign corporations. Any corporation, domestic or foreign, | ||||||
8 | may report interim changes in the name, address or both of its | ||||||
9 | officers and directors, its principal office or its | ||||||
10 | minority-owned business status by filing a report under this | ||||||
11 | Section containing the following information: | ||||||
12 | (1) The name of the corporation. | ||||||
13 | (2) The address, including street and number, or
rural | ||||||
14 | route number, of its registered office in this State, and | ||||||
15 | the name of its registered agent at that address. | ||||||
16 | (3) The address, including street and number, or
rural | ||||||
17 | route number, of its principal office. | ||||||
18 | (4) The names and respective addresses, including
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19 | street and number, or rural route number, of its directors | ||||||
20 | and officers. | ||||||
21 | A statement, including the basis therefor, of
status as a | ||||||
22 | minority-owned business or as a women-owned business as those | ||||||
23 | terms are defined in the Business Enterprise for Minorities, | ||||||
24 | Women, and Persons with Disabilities Act. | ||||||
25 | The interim report of changes shall be made on forms |
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1 | prescribed and furnished by the Secretary of State and shall | ||||||
2 | be executed by the corporation by its president, a | ||||||
3 | vice-president, secretary, assistant secretary, treasurer, or | ||||||
4 | other officer duly authorized by the board of directors of the | ||||||
5 | corporation to execute those reports, and verified by him or | ||||||
6 | her, or, if the corporation is in the hands of a receiver or | ||||||
7 | trustee, it shall be executed on behalf of the corporation and | ||||||
8 | verified by the receiver or trustee.
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9 | (805 ILCS 5/15.10) (from Ch. 32, par. 15.10)
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10 | Sec. 15.10. Fees for filing documents. The Secretary of | ||||||
11 | State shall charge and collect for:
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12 | (a) Filing articles of incorporation, $150.
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13 | (b) Filing articles of amendment, $50, unless the | ||||||
14 | amendment is a
restatement
of the articles of
incorporation, | ||||||
15 | in which case the fee shall be $150.
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16 | (c) Filing articles of merger or consolidation, $100, but | ||||||
17 | if the merger or
consolidation involves more than 2 | ||||||
18 | corporations, $50 for each
additional corporation.
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19 | (d) Filing articles of share exchange, $100.
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20 | (e) Filing articles of dissolution, $5.
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21 | (f) Filing application to reserve a corporate name, $25.
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22 | (g) Filing a notice of transfer of a reserved corporate | ||||||
23 | name, $25.
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24 | (h) Filing statement of change of address of registered | ||||||
25 | office or
change of registered agent, or both, $25.
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1 | (i) Filing statement of the establishment of a series of | ||||||
2 | shares,
$25.
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3 | (j) Filing an application of a foreign corporation for | ||||||
4 | authority to transact
business in this State, $150.
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5 | (k) Filing an application of a foreign corporation for | ||||||
6 | amended authority to
transact business in this State, $25.
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7 | (l) Filing a copy of amendment to the articles of | ||||||
8 | incorporation of a
foreign corporation holding authority to | ||||||
9 | transact
business in this State, $50, unless the amendment is | ||||||
10 | a restatement
of
the articles of incorporation, in which case | ||||||
11 | the fee shall be $150.
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12 | (m) Filing a copy of articles of merger of a foreign | ||||||
13 | corporation
holding a certificate of authority to transact | ||||||
14 | business in this State,
$100, but if the merger involves more | ||||||
15 | than 2 corporations, $50 for each
additional corporation.
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16 | (n) Filing an application for withdrawal and final report | ||||||
17 | or a copy of
articles of dissolution of a foreign corporation, | ||||||
18 | $25.
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19 | (o) Filing an annual report, interim annual report, or | ||||||
20 | final transition
annual report of a domestic or foreign | ||||||
21 | corporation, $75.
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22 | (p) Filing an application for reinstatement of a domestic | ||||||
23 | or a foreign
corporation, $200.
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24 | (q) Filing an application for use of an assumed corporate | ||||||
25 | name, $150 for
each year or part thereof
ending in 0 or 5, $120 | ||||||
26 | for each year or part thereof ending in 1 or 6, $90
for each |
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1 | year or part thereof ending in 2 or 7, $60 for each year or | ||||||
2 | part
thereof ending in 3 or 8, $30 for each year or part | ||||||
3 | thereof ending in 4 or 9,
between the date of filing
the | ||||||
4 | application and the date of the renewal of the assumed | ||||||
5 | corporate name;
and a renewal fee for each assumed corporate | ||||||
6 | name, $150.
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7 | (r) To change an assumed corporate name for the period | ||||||
8 | remaining until
the renewal date of the original assumed name, | ||||||
9 | $25.
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10 | (s) Filing an application for cancellation of an assumed | ||||||
11 | corporate name, $5.
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12 | (t) Filing an application to register the corporate name | ||||||
13 | of a foreign
corporation, $50; and an annual renewal fee for | ||||||
14 | the registered name, $50.
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15 | (u) Filing an application for cancellation of a registered | ||||||
16 | name of a
foreign corporation, $25.
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17 | (v) Filing a statement of correction, $50.
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18 | (w) Filing a petition for refund or adjustment, $5.
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19 | (x) Filing a statement of election of an extended filing | ||||||
20 | month, $25.
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21 | (y) Filing a report of interim changes, $50. | ||||||
22 | (z) Filing any other statement or report, $5.
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23 | (Source: P.A. 95-331, eff. 8-21-07.)
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24 | (805 ILCS 5/15.35) (from Ch. 32, par. 15.35)
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25 | (Section scheduled to be repealed on December 31, 2025)
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1 | Sec. 15.35. Franchise taxes payable by domestic | ||||||
2 | corporations. For the privilege of exercising its franchises | ||||||
3 | in this State, each
domestic corporation shall pay to the | ||||||
4 | Secretary of State the following
franchise taxes, computed on | ||||||
5 | the basis, at the rates and for the periods
prescribed in this | ||||||
6 | Act:
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7 | (a) An initial franchise tax at the time of filing its | ||||||
8 | first report of
issuance of shares.
| ||||||
9 | (b) An additional franchise tax at the time of filing | ||||||
10 | (1) a report of
the issuance of additional shares, or (2) a | ||||||
11 | report of an increase in paid-in
capital without the | ||||||
12 | issuance of shares, or (3) an amendment to the articles
of | ||||||
13 | incorporation or a report of cumulative changes in paid-in | ||||||
14 | capital,
whenever any amendment or such report discloses | ||||||
15 | an increase in its paid-in
capital over the amount thereof | ||||||
16 | last reported in any document, other than
an annual | ||||||
17 | report, interim annual report or final transition annual | ||||||
18 | report
required by this Act to be filed in the office of | ||||||
19 | the Secretary of State.
| ||||||
20 | (c) An additional franchise tax at the time of filing | ||||||
21 | a report of paid-in
capital following a statutory merger | ||||||
22 | or consolidation, which discloses that
the paid-in capital | ||||||
23 | of the surviving or new corporation immediately after
the | ||||||
24 | merger or consolidation is greater than the sum of the | ||||||
25 | paid-in capital
of all of the merged or consolidated | ||||||
26 | corporations as last reported
by them in any documents, |
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1 | other than annual reports, required by this Act
to be | ||||||
2 | filed in the office of the Secretary of State; and in | ||||||
3 | addition, the
surviving or new corporation shall be liable | ||||||
4 | for a further additional franchise
tax on the paid-in | ||||||
5 | capital of each of the merged or consolidated
corporations | ||||||
6 | as last reported by them in any document, other than an | ||||||
7 | annual
report, required by this Act to be filed with the | ||||||
8 | Secretary of State from
their taxable year end to the next | ||||||
9 | succeeding anniversary month or, in
the case of a | ||||||
10 | corporation which has established an extended filing | ||||||
11 | month,
the extended filing month of the surviving or new | ||||||
12 | corporation; however if
the taxable year ends within the | ||||||
13 | 2-month 2 month period immediately preceding the
| ||||||
14 | anniversary month or, in the case of a corporation which | ||||||
15 | has established an
extended filing month, the extended | ||||||
16 | filing month of the surviving or new
corporation the tax | ||||||
17 | will be computed to the anniversary month or, in the
case | ||||||
18 | of a corporation which has established an extended filing | ||||||
19 | month, the
extended filing month of the surviving or new | ||||||
20 | corporation in the next
succeeding calendar year.
| ||||||
21 | (d) An annual franchise tax payable each year with the | ||||||
22 | annual report
which the corporation is required by this | ||||||
23 | Act to file.
| ||||||
24 | (e) On or after January 1, 2020 and prior to January 1, | ||||||
25 | 2021, the first $30 in liability is exempt from the tax imposed | ||||||
26 | under this Section. On or after January 1, 2021 and prior to |
| |||||||
| |||||||
1 | January 1, 2022, the first $1,000 in liability is exempt from | ||||||
2 | the tax imposed under this Section. On or after January 1, 2022 | ||||||
3 | and prior to January 1, 2023, the first $10,000 in liability is | ||||||
4 | exempt from the tax imposed under this Section. On or after | ||||||
5 | January 1, 2023 and prior to January 1, 2024, the first | ||||||
6 | $100,000 in liability is exempt from the tax imposed under | ||||||
7 | this Section. The provisions of this Section shall not require | ||||||
8 | the payment of any franchise tax that would otherwise have | ||||||
9 | been due and payable on or after January 1, 2024. There shall | ||||||
10 | be no refunds or proration of franchise tax for any taxes due | ||||||
11 | and payable on or after January 1, 2024 on the basis that a | ||||||
12 | portion of the corporation's taxable year extends beyond | ||||||
13 | January 1, 2024. Public Act 101-9 This amendatory Act of the | ||||||
14 | 101st General Assembly shall not affect any right accrued or | ||||||
15 | established, or any liability or penalty incurred prior to | ||||||
16 | January 1, 2024. | ||||||
17 | (f) This Section is repealed on December 31, 2024 2025 . | ||||||
18 | (Source: P.A. 101-9, eff. 6-5-19; revised 7-18-19.)
| ||||||
19 | (805 ILCS 5/15.97) (from Ch. 32, par. 15.97)
| ||||||
20 | (Section scheduled to be repealed on December 31, 2022)
| ||||||
21 | Sec. 15.97. Corporate Franchise Tax Refund Fund.
| ||||||
22 | (a) Beginning July 1, 1993, a percentage of the amounts | ||||||
23 | collected
under Sections 15.35, 15.45, 15.65, and 15.75 of | ||||||
24 | this Act shall be
deposited into the Corporate Franchise Tax | ||||||
25 | Refund Fund, a special Fund
hereby created in the State |
| |||||||
| |||||||
1 | treasury. From July 1, 1993, until December 31,
1994, there | ||||||
2 | shall be deposited into the Fund 3% of the amounts received
| ||||||
3 | under those Sections. Beginning January 1, 1995, and for each | ||||||
4 | fiscal year
beginning thereafter, 2% of the amounts collected | ||||||
5 | under those Sections
during the preceding fiscal year shall be | ||||||
6 | deposited into the Fund.
| ||||||
7 | (b) Beginning July 1, 1993, moneys in the Fund shall be | ||||||
8 | expended
exclusively for the purpose of paying refunds payable | ||||||
9 | because of overpayment
of franchise taxes, penalties, or | ||||||
10 | interest under Sections 13.70, 15.35,
15.45, 15.65, 15.75, and | ||||||
11 | 16.05 of this
Act and making transfers authorized under this | ||||||
12 | Section. Refunds in
accordance with the provisions of | ||||||
13 | subsections (f) and (g) of Section 1.15
and Section 1.17 of | ||||||
14 | this Act may be made from the Fund only to the extent that
| ||||||
15 | amounts collected under Sections 15.35, 15.45, 15.65, and | ||||||
16 | 15.75 of this Act
have been deposited in the Fund and remain | ||||||
17 | available. On or before August 31 of each year, the balance in | ||||||
18 | the Fund in excess of $100,000 shall be transferred to the | ||||||
19 | General Revenue Fund. Notwithstanding the provisions of this | ||||||
20 | subsection, for the period commencing on or after July 1, | ||||||
21 | 2022, amounts in the fund shall not be transferred to the | ||||||
22 | General Revenue Fund and shall be used to pay refunds in | ||||||
23 | accordance with the provisions of this Act. Within a | ||||||
24 | reasonable time after December 31, 2022, the Secretary of | ||||||
25 | State shall direct and the Comptroller shall order transferred | ||||||
26 | to the General Revenue Fund all amounts remaining in the fund.
|
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| |||||||
1 | (c) This Act shall constitute an irrevocable and | ||||||
2 | continuing
appropriation from the Corporate Franchise Tax | ||||||
3 | Refund Fund for the purpose
of paying refunds upon the order of | ||||||
4 | the Secretary of State in accordance
with the provisions of | ||||||
5 | this Section.
| ||||||
6 | (d) This Section is repealed on December 31, 2024 2022 . | ||||||
7 | (Source: P.A. 101-9, eff. 6-5-19.)
| ||||||
8 | Section 10. The Benefit Corporation Act is amended by | ||||||
9 | changing Sections 1.10 and 2.01 as follows: | ||||||
10 | (805 ILCS 40/1.10)
| ||||||
11 | Sec. 1.10. Definitions. As used in this Act, unless the | ||||||
12 | context otherwise requires, the words and phrases defined in | ||||||
13 | this Section shall have the meanings set forth herein. | ||||||
14 | "Benefit corporation" means a corporation organized under | ||||||
15 | the Business Corporation Act of 1983 or a foreign benefit | ||||||
16 | corporation organized under the laws of another state, | ||||||
17 | authorized to transact business in this State, and :
| ||||||
18 | (1) which has elected to become subject to this Act; | ||||||
19 | and
| ||||||
20 | (2) whose status as a benefit corporation has not been | ||||||
21 | terminated under Section 2.10.
| ||||||
22 | "Benefit director" means either:
| ||||||
23 | (1) the director designated as the benefit director of | ||||||
24 | a benefit corporation under Section 4.05; or
|
| |||||||
| |||||||
1 | (2) a person with one or more of the powers, duties, or | ||||||
2 | rights of a benefit director to the extent provided in the | ||||||
3 | bylaws pursuant to Section 4.05.
| ||||||
4 | "Benefit enforcement proceeding" means a claim or action | ||||||
5 | for:
| ||||||
6 | (1) the failure of a benefit corporation to pursue or | ||||||
7 | create general public benefit or a specific public benefit | ||||||
8 | set forth in its articles of incorporation; or
| ||||||
9 | (2) a violation of an obligation, duty, or standard of | ||||||
10 | conduct under this Act.
| ||||||
11 | "Benefit officer" means the individual designated as the | ||||||
12 | benefit officer of a benefit corporation under Section 4.15.
| ||||||
13 | "General public benefit" means a material positive impact | ||||||
14 | on society and the environment, taken as a whole, assessed | ||||||
15 | against a third-party standard, from the business and | ||||||
16 | operations of a benefit corporation.
| ||||||
17 | "Independent" means having no material relationship with a | ||||||
18 | benefit corporation or a subsidiary of the benefit | ||||||
19 | corporation. A person serving as benefit director or benefit | ||||||
20 | officer may be considered independent. For the purposes of | ||||||
21 | this definition, a percentage of ownership in an entity shall | ||||||
22 | be calculated as if all outstanding rights to acquire equity | ||||||
23 | interests in the entity have been exercised. A material | ||||||
24 | relationship between a person and a benefit corporation or any | ||||||
25 | of its subsidiaries will be conclusively presumed to exist if:
| ||||||
26 | (1) the person is, or has been within the last 3 years, |
| |||||||
| |||||||
1 | an employee other than a benefit officer of the benefit | ||||||
2 | corporation or a subsidiary of the benefit corporation;
| ||||||
3 | (2) an immediate family member of the person is, or | ||||||
4 | has been within the last 3 years, an executive officer | ||||||
5 | other than a benefit officer of the benefit corporation or | ||||||
6 | its subsidiaries;
or | ||||||
7 | (3) there is beneficial or record ownership of 5% or | ||||||
8 | more of the outstanding shares of the benefit corporation | ||||||
9 | by:
| ||||||
10 | (A) the person; or
| ||||||
11 | (B) an entity:
| ||||||
12 | (i) of which the person is a director, an | ||||||
13 | officer, or a manager; or
| ||||||
14 | (ii) in which the person owns beneficially or | ||||||
15 | of record 5% or more of the outstanding equity | ||||||
16 | interests.
| ||||||
17 | "Minimum status vote" means that:
| ||||||
18 | (1) in the case of a corporation, in addition to any | ||||||
19 | other approval or vote required by the Business | ||||||
20 | Corporation Act of 1983, the bylaws, or the articles of | ||||||
21 | incorporation:
| ||||||
22 | (A) the shareholders of every class or series | ||||||
23 | shall be entitled to vote on the corporate action | ||||||
24 | regardless of a limitation stated in the articles of | ||||||
25 | incorporation or bylaws on the voting rights of any | ||||||
26 | class or series; and
|
| |||||||
| |||||||
1 | (B) the corporate action shall be approved by vote | ||||||
2 | of the outstanding shares of each class or series | ||||||
3 | entitled to vote by at least two-thirds of the votes | ||||||
4 | that all shareholders of the class or series are | ||||||
5 | entitled to cast on the action; and
| ||||||
6 | (2) in the case of an entity organized under the laws | ||||||
7 | of this State that is not a corporation, in addition to any | ||||||
8 | other approval, vote, or consent required by the statutory | ||||||
9 | law, if any, that principally governs the internal affairs | ||||||
10 | of the entity or any provision of the publicly filed | ||||||
11 | record or document required to form the entity, if any, or | ||||||
12 | of any agreement binding on some or all of the holders of | ||||||
13 | equity interests in the entity:
| ||||||
14 | (A) the holders of every class or series of equity | ||||||
15 | interest in the entity that are entitled to receive a | ||||||
16 | distribution of any kind from the entity shall be | ||||||
17 | entitled to vote on or consent to the action | ||||||
18 | regardless of any otherwise applicable limitation on | ||||||
19 | the voting or consent rights of any class or series; | ||||||
20 | and
| ||||||
21 | (B) the action must be approved by a vote or | ||||||
22 | consent of at least two-thirds of such holders.
| ||||||
23 | "Specific public benefit" means:
| ||||||
24 | (1) providing low-income or underserved individuals or | ||||||
25 | communities with beneficial products or services;
| ||||||
26 | (2) promoting economic opportunity for individuals or |
| |||||||
| |||||||
1 | communities beyond the creation of jobs in the ordinary | ||||||
2 | course of business;
| ||||||
3 | (3) preserving the environment;
| ||||||
4 | (4) improving human health;
| ||||||
5 | (5) promoting the arts, sciences or advancement of | ||||||
6 | knowledge;
| ||||||
7 | (6) increasing the flow of capital to entities with a | ||||||
8 | public benefit purpose; or
| ||||||
9 | (7) the accomplishment of any other particular benefit | ||||||
10 | for society or the environment.
| ||||||
11 | "Subsidiary" of a person means an entity in which the | ||||||
12 | person owns beneficially or of record 50% or more of the | ||||||
13 | outstanding equity interests. For the purposes of this | ||||||
14 | subsection, a percentage of ownership in an entity shall be | ||||||
15 | calculated as if all outstanding rights to acquire equity | ||||||
16 | interests in the entity have been exercised.
| ||||||
17 | "Third-party standard" means a standard for defining, | ||||||
18 | reporting, and assessing overall corporate, social, and | ||||||
19 | environmental performance that:
| ||||||
20 | (1) is a comprehensive assessment of the impact of the | ||||||
21 | business and the business' operations upon the | ||||||
22 | considerations listed in subdivisions (a)(1)(B) through | ||||||
23 | (a)(1)(E) of Section 4.01; | ||||||
24 | (2) is developed by an entity that has no material | ||||||
25 | financial relationship with the benefit corporation or any | ||||||
26 | of its subsidiaries; |
| |||||||
| |||||||
1 | (3) is developed by an entity that is not materially | ||||||
2 | financed by any of the following organizations and not | ||||||
3 | more than one-third of the members of the governing body | ||||||
4 | of the entity are representatives of:
| ||||||
5 | (A) associations of businesses operating in a | ||||||
6 | specific industry, the performance of whose members is | ||||||
7 | measured by the standard;
| ||||||
8 | (B) businesses from a specific industry or an | ||||||
9 | association of businesses in that industry; or
| ||||||
10 | (C) businesses whose performance is assessed | ||||||
11 | against the standard; and
| ||||||
12 | (4) is developed by an entity that:
| ||||||
13 | (A) accesses necessary and appropriate expertise | ||||||
14 | to assess overall corporate social and environmental | ||||||
15 | performance; and
| ||||||
16 | (B) uses a balanced multi-stakeholder approach, | ||||||
17 | including a public comment period of at least 30 days | ||||||
18 | to develop the standard; and
| ||||||
19 | (5) makes the following information regarding the | ||||||
20 | standard publicly available:
| ||||||
21 | (A) the factors considered when measuring the | ||||||
22 | overall social and environmental performance of a | ||||||
23 | business and the relative weight, if any, given to | ||||||
24 | each of those factors;
| ||||||
25 | (B) the identity of the directors, officers, any | ||||||
26 | material owners, and the governing body of the entity |
| |||||||
| |||||||
1 | that developed, and controls revisions to, the | ||||||
2 | standard, and the process by which
revisions to the | ||||||
3 | standard and changes to the membership of the | ||||||
4 | governing body are made; and | ||||||
5 | (C) an accounting of the sources of financial | ||||||
6 | support for the entity, with sufficient detail to | ||||||
7 | disclose any relationships that could reasonably be | ||||||
8 | considered to present a potential conflict of | ||||||
9 | interest.
| ||||||
10 | (Source: P.A. 97-885, eff. 1-1-13.) | ||||||
11 | (805 ILCS 40/2.01)
| ||||||
12 | Sec. 2.01. Formation of benefit corporations. A benefit | ||||||
13 | corporation must be formed in accordance with Article 2 of the | ||||||
14 | Business Corporation Act of 1983 or be a foreign benefit | ||||||
15 | corporation organized under the laws of another state and | ||||||
16 | authorized to transact business in this State . In addition to | ||||||
17 | the formation requirements of that Act, the articles of | ||||||
18 | incorporation of a benefit corporation must state that it is a | ||||||
19 | benefit corporation in accordance with the provisions of this | ||||||
20 | Article.
| ||||||
21 | (Source: P.A. 97-885, eff. 1-1-13.) | ||||||
22 | Section 15. The
Uniform Limited Partnership Act (2001) is | ||||||
23 | amended by changing Section 1308 as follows: |
| |||||||
| |||||||
1 | (805 ILCS 215/1308) | ||||||
2 | Sec. 1308. Department of Business Services Special | ||||||
3 | Operations Fund. | ||||||
4 | (a) A special fund in the State Treasury is created and | ||||||
5 | shall be known as the Department of Business Services Special | ||||||
6 | Operations Fund. Moneys deposited into the Fund shall, subject | ||||||
7 | to appropriation, be used by the Department of Business | ||||||
8 | Services of the Office of the Secretary of State, hereinafter | ||||||
9 | "Department", to create and maintain the capability to perform | ||||||
10 | expedited services in response to special requests made by the | ||||||
11 | public for same day or 24 hour service. Moneys deposited into | ||||||
12 | the Fund shall be used for, but not limited to, expenditures | ||||||
13 | for personal services, retirement, Social Security, | ||||||
14 | contractual services, equipment, electronic data processing, | ||||||
15 | and telecommunications. | ||||||
16 | (b) The balance in the Fund at the end of any fiscal year | ||||||
17 | shall not exceed $600,000 and any amount in excess thereof | ||||||
18 | shall be transferred to the General Revenue Fund. | ||||||
19 | (c) All fees payable to the Secretary of State under this | ||||||
20 | Section shall be deposited into the Fund. No other fees or | ||||||
21 | charges collected under this Act shall be deposited into the | ||||||
22 | Fund. | ||||||
23 | (d) "Expedited services" means services rendered within | ||||||
24 | the same day, or within 24 hours from the time the request | ||||||
25 | therefor is submitted by the filer, law firm, service company, | ||||||
26 | or messenger physically in person or, at the Secretary of |
| |||||||
| |||||||
1 | State's discretion, by electronic means, to the Department's | ||||||
2 | Springfield Office or Chicago Office and includes requests for | ||||||
3 | certified copies and , photocopies, and certificates of | ||||||
4 | existence or abstracts of computer record made to the | ||||||
5 | Department's Springfield Office in person or by telephone, or | ||||||
6 | requests for certificates of existence or abstracts of | ||||||
7 | computer record made in person or by telephone to the | ||||||
8 | Department's Chicago Office. A request submitted by electronic | ||||||
9 | means may not be considered a request for expedited services | ||||||
10 | solely because of its submission by electronic means, unless | ||||||
11 | expedited service is requested by the filer. | ||||||
12 | (e) Fees for expedited services shall be as follows: | ||||||
13 | Merger, $200; | ||||||
14 | Certificate of limited partnership, $100; | ||||||
15 | Certificate of amendment, $100; | ||||||
16 | Reinstatement, $100; | ||||||
17 | Application for admission to transact business, $100; | ||||||
18 | Abstract Certificate of existence or abstract of | ||||||
19 | computer record, $20; | ||||||
20 | All other filings, copies of documents, annual renewal | ||||||
21 | reports, and copies of documents of canceled limited | ||||||
22 | partnerships, $50.
| ||||||
23 | (f) Filing of annual renewal reports and requests for | ||||||
24 | certificates of existence shall be made in real time only, | ||||||
25 | without expedited services available. | ||||||
26 | (Source: P.A. 100-186, eff. 7-1-18; 100-561, eff. 7-1-18; |
| |||||||
| |||||||
1 | 101-81, eff. 7-12-19.)
|