SB771 Engrossed                      LRB093 03108 JLS 03125 b

 1        AN ACT in relation to banking.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section  5.  The  Illinois  Banking  Act  is  amended  by
 5    changing Section 16.1 as follows:

 6        (205 ILCS 5/16.1) (from Ch. 17, par. 323.1)
 7        Sec. 16.1.  Removal of directors.  One  or  more  of  the
 8    directors may be removed, with or without cause, at a meeting
 9    of  shareholders  by the affirmative vote of the holders of a
10    majority of the outstanding shares then entitled to  vote  at
11    an election of directors, except as follows:
12             (1)  No  director  shall  be removed at a meeting of
13        shareholders unless the notice of the meeting shall state
14        that a purpose of the meeting is to vote upon the removal
15        of one or more directors named in the notice.   Only  the
16        named  director  or  directors  may  be  removed  at that
17        meeting.
18             (2)  In the case of a bank having cumulative voting,
19        if less than the  entire  board  is  to  be  removed,  no
20        director  may be removed if the votes cast against his or
21        her removal would be sufficient to elect him  or  her  if
22        then  cumulatively  voted  at  an  election of the entire
23        board of directors.
24             (3)  If a director is elected by a class  or  series
25        of  shares,  he  or  she  may  be  removed  only  by  the
26        shareholders of that class or series.
27             (4)  In  the  case  of  a  State bank whose board is
28        classified as provided in paragraph (3) of Section 16  of
29        this  Act,  the  charter  or the by-laws may provide that
30        directors may be removed only for cause.
31    (Source: P.A. 92-483, eff. 8-23-01.)