(805 ILCS 105/108.60) (from Ch. 32, par. 108.60)
Sec. 108.60. Director conflict of interest. (a) If a
transaction is fair to a corporation at the time it is
authorized, approved, or ratified, the fact that a director
of the corporation is directly or indirectly a party to the
transaction is not grounds for invalidating the transaction.
(b) In a proceeding contesting the validity of a
transaction described in subsection (a), the person
asserting validity has the burden of proving fairness
unless:
(1) The material facts of the transaction and the |
(c) The presence of the director, who is directly or
indirectly a party to the transaction described in
subsection (a), or a director who is otherwise not
disinterested, may be counted in determining whether a
quorum is present but may not be counted when the board of
directors or a committee of the board takes action on the
transaction.
(d) For purposes of this Section, a director is
"indirectly" a party to a transaction if the other party to
the transaction is an entity in which the director has a
material financial interest or of which the director is an
officer, director or general partner; except that if a director is an officer or director of both parties to a transaction involving a grant or contribution, without consideration, from one entity to the other, that director is not "indirectly" a party to the transaction provided the director does not have a material financial interest in the entity that receives the grant or contribution.
(e) (Blank).
(Source: P.A. 96-649, eff. 1-1-10; 96-994, eff. 7-2-10.)
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