HB0149 95TH GENERAL ASSEMBLY

LRB095 03988 LCT 24050 b

95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
HB0149

Introduced 1/19/2007, by Rep. Jack D. Franks

SYNOPSIS AS INTRODUCED:

805 ILCS 180/35-7

Amends the Limited Liability Company Act. Imposes personal liability on a member or manager of a limited liability company, who, with knowledge of the dissolution of that company, creates liability for the limited liability company by an act that is not appropriate for the winding up of the company's business, to the company or any third party for any damage to the company or third party arising from the liability.

A BILL FOR

AN ACT concerning business.

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

Section 5. The Limited Liability Company Act is amended by changing Section 35-7 as follows:

(805 ILCS 180/35-7)

Sec. 35-7. Member or manager's power and liability as agent after dissolution.

(a) A limited liability company is bound by a member or manager's act after dissolution that:

(1) is appropriate for winding up the company's business; or

(2) would have bound the company under Section 13-5 before dissolution, if the other party to the transaction did not have notice of the dissolution.

(b) Notwithstanding Section 10-10, a A member or manager who, with knowledge of the dissolution, creates subjects a limited liability company to liability by an act that is not appropriate for winding up the company's business is personally liable to the company or any third party for any damage caused to the company or third party arising from the liability.

(Source: P.A. 90-424, eff. 1-1-98.)