State of Illinois
92nd General Assembly
Legislation

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92_SB1540eng

 
SB1540 Engrossed                               LRB9210697DHgc

 1        AN ACT in relation to corporations.

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

 4        Section 5.  The  Business  Corporation  Act  of  1983  is
 5    amended by changing Section 2.35 as follows:

 6        (805 ILCS 5/2.35) (from Ch. 32, par. 2.35)
 7        Sec.  2.35.   Meetings  of  the  board  of directors of a
 8    residential cooperative corporation  containing  24  or  more
 9    units  and  located  in a city containing more than 1,000,000
10    inhabitants shall be open  to  any  residential  shareholder,
11    except  for  the  portion  of any meeting held (i) to discuss
12    litigation when  an  action  against  or  on  behalf  of  the
13    corporation  has  been  filed  and  is  pending in a court or
14    administrative tribunal, or when the board of directors finds
15    that such an action is probable or imminent, (ii) to consider
16    information regarding appointment, employment or dismissal of
17    an employee, or (iii) to  discuss  violations  of  rules  and
18    regulations  of the corporation by a residential shareholder.
19    Any residential shareholder may record by tape, film or other
20    means the proceedings at such meetings  or  portions  thereof
21    required  to be open by this Section. The board may prescribe
22    reasonable rules and regulations to govern the right to  make
23    such  recordings.  Notice of such meetings shall be mailed or
24    delivered at least 48 hours prior thereto, unless  a  written
25    waiver  of  such  notice  is  signed by the person or persons
26    entitled  to  such  notice  pursuant  to  the   articles   of
27    incorporation, bylaws, or other instrument before the meeting
28    is  convened.  Copies  of notices of meetings of the board of
29    directors shall be  posted  in  entranceways,  elevators,  or
30    other  conspicuous  places  in the residential cooperative at
31    least  48  hours  prior  to  the  meeting  of  the  board  of
 
SB1540 Engrossed            -2-                LRB9210697DHgc
 1    directors. If there is no common entranceway for  7  or  more
 2    apartments,  the board of directors may designate one or more
 3    locations in the proximity of such units where the notices of
 4    meetings shall be  posted.  For  purposes  of  this  Section,
 5    "meeting  of the board of directors" means any gathering of a
 6    quorum of the members  of  the  board  of  directors  of  the
 7    residential  cooperative  held  for the purpose of discussing
 8    business of the cooperative. The provisions of  this  Section
 9    shall  apply  to any residential cooperative containing 24 or
10    more units  and  located  in  a  city  containing  more  than
11    1,000,000  inhabitants  situated  in  the  State  of Illinois
12    regardless of where such cooperative may be incorporated.
13    (Source: P.A. 85-1269.)

14        Section 10.  The General Not For Profit  Corporation  Act
15    of 1986 is amended by changing Section 108.21 as follows:

16        (805 ILCS 105/108.21) (from Ch. 32, par. 108.21)
17        Sec.  108.21.   Meetings  of  the board of directors of a
18    residential cooperative not-for-profit corporation containing
19    24 or more units and located in a city containing  more  than
20    1,000,000  inhabitants or containing 50 or more single family
21    units with individual unit legal descriptions  based  upon  a
22    recorded plat of a subdivision and located in a county with a
23    population between 780,000 and 3,000,000 inhabitants shall be
24    open  to  any  member,  except for the portion of any meeting
25    held (i) to discuss litigation when an action against  or  on
26    behalf  of the corporation has been filed and is pending in a
27    court or  administrative  tribunal,  or  when  the  board  of
28    directors  finds that such an action is probable or imminent,
29    (ii)   to   consider   information   regarding   appointment,
30    employment or dismissal of an employee, or (iii)  to  discuss
31    violations  of  rules and regulations of the corporation by a
32    residential shareholder. Any member may record by tape,  film
 
SB1540 Engrossed            -3-                LRB9210697DHgc
 1    or  other  means the proceedings at such meetings or portions
 2    thereof required to be open by this Section.  The  board  may
 3    prescribe  reasonable  rules  and  regulations  to govern the
 4    right to make such recordings. Notice of such meetings  shall
 5    be  mailed  or  delivered  at  least  48 hours prior thereto,
 6    unless a written waiver of  such  notice  is  signed  by  the
 7    person  or  persons  entitled  to such notice pursuant to the
 8    articles of incorporation, bylaws,  other  instrument  before
 9    the meeting is convened. Copies of notices of meetings of the
10    board   of   directors   shall  be  posted  in  entranceways,
11    elevators, or other conspicuous  places  in  the  residential
12    cooperative  at  least  48  hours prior to the meeting of the
13    board of directors. If there is no common entranceway  for  7
14    or  more apartments, the board of directors may designate one
15    or more locations in the proximity of such  units  where  the
16    notices  of  meetings  shall  be posted. For purposes of this
17    Section, "meeting  of  the  board  of  directors"  means  any
18    gathering  of  a  quorum  of  the  members  of  the  board of
19    directors of the residential cooperative held for the purpose
20    of discussing business of the cooperative. The provisions  of
21    this  Section  shall  apply  to  any  residential cooperative
22    containing 24 or more units and located in a city  containing
23    more  than  1,000,000  inhabitants  or  containing 50 or more
24    single family units and located in a county with a population
25    between 780,000 and 3,000,000  inhabitants  situated  in  the
26    State of Illinois regardless of where such cooperative may be
27    incorporated.
28    (Source: P.A. 91-465, eff. 8-6-99.)

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