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90_SB1528
205 ILCS 5/16.1 from Ch. 17, par. 323.1
Amends the Illinois Banking Act. Adds a caption to a
Section concerning the removal of bank directors.
LRB9009866JSmg
LRB9009866JSmg
1 AN ACT to amend the Illinois Banking Act by changing
2 Section 16.1.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Illinois Banking Act is amended by
6 changing Section 16.1 as follows:
7 (205 ILCS 5/16.1) (from Ch. 17, par. 323.1)
8 Sec. 16.1. Removal of directors. One or more of the
9 directors may be removed, with cause, at a meeting of
10 shareholders by the affirmative vote of the holders of a
11 majority of the outstanding shares then entitled to vote at
12 an election of directors, except as follows:
13 (1) No director shall be removed at a meeting of
14 shareholders unless the notice of the meeting shall state
15 that a purpose of the meeting is to vote upon the removal of
16 one or more directors named in the notice. Only the named
17 director or directors may be removed at that meeting.
18 (2) In the case of a bank having cumulative voting, if
19 less than the entire board is to be removed, no director may
20 be removed if the votes cast against his or her removal would
21 be sufficient to elect him or her if then cumulatively voted
22 at an election of the entire board of directors.
23 (3) If a director is elected by a class or series of
24 shares, he or she may be removed only by the shareholders of
25 that class or series.
26 (4) In the case of a State bank whose board is
27 classified as provided in paragraph (5) of Section 16 of this
28 Act, the charter or the by-laws may provide that directors
29 may be removed only for cause.
30 (Source: P.A. 86-368; 87-269.)