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1 | AN ACT concerning business.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The General Not For Profit Corporation Act of | |||||||||||||||||||
5 | 1986 is amended by changing Section 108.70 as follows:
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6 | (805 ILCS 105/108.70) (from Ch. 32, par. 108.70)
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7 | Sec. 108.70. Limited Liability of directors, officers , | |||||||||||||||||||
8 | board members,
and persons who serve without compensation.
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9 | (a) No director or officer serving without compensation, | |||||||||||||||||||
10 | other than
reimbursement for actual expenses, of a corporation | |||||||||||||||||||
11 | organized under this
Act or any predecessor Act and exempt, or | |||||||||||||||||||
12 | qualified for exemption, from
taxation pursuant to Section | |||||||||||||||||||
13 | 501(c) of the Internal Revenue Code of 1986,
as amended, shall | |||||||||||||||||||
14 | be liable, and no cause of action may be brought, for
damages | |||||||||||||||||||
15 | resulting from the exercise of judgment or discretion in | |||||||||||||||||||
16 | connection
with the duties or responsibilities of such director | |||||||||||||||||||
17 | or officer unless the
act or omission involved willful or | |||||||||||||||||||
18 | wanton conduct.
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19 | (b) No director of a corporation organized under this Act
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20 | or any predecessor Act for the purposes identified in items | |||||||||||||||||||
21 | (14), (19),
(21) and (22) of
subsection (a) of Section 103.05 | |||||||||||||||||||
22 | of this Act, and exempt or qualified for
exemption from | |||||||||||||||||||
23 | taxation pursuant to Section 501(c) of the Internal
Revenue |
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1 | Code of 1986, as amended, shall be liable, and no cause of | ||||||
2 | action
may be brought for damages resulting from the exercise | ||||||
3 | of judgment or
discretion in connection with the duties or | ||||||
4 | responsibilities of such
director, unless: (1) such director | ||||||
5 | earns in excess of $5,000 per year from
his duties as director, | ||||||
6 | other than reimbursement for actual expenses; or
(2) the act or | ||||||
7 | omission involved willful or wanton conduct.
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8 | (b-5) No volunteer board member serving without | ||||||
9 | compensation, other than reimbursement for actual expenses, of | ||||||
10 | a corporation organized under this Act or any predecessor Act | ||||||
11 | and exempt, or qualified for exemption, from taxation pursuant | ||||||
12 | to Section 501(c-3) of the Internal Revenue Code of 1986, as | ||||||
13 | amended, shall be liable, and no cause of action may be | ||||||
14 | brought, for damages resulting from any action of the executive | ||||||
15 | director concerning the false reporting of or intentional | ||||||
16 | tampering with financial records of the organization, where the | ||||||
17 | actions of the executive director result in legal action.
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18 | (c) No person who, without compensation other than | ||||||
19 | reimbursement for
actual expenses, renders service to or for a | ||||||
20 | corporation organized under
this Act or any predecessor Act and | ||||||
21 | exempt or qualified for exemption
from taxation pursuant to
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22 | Section 501(c)(3) of the Internal Revenue Code of 1986, as | ||||||
23 | amended, shall
be liable, and no cause of action may be | ||||||
24 | brought, for damages resulting
from an act or omission in | ||||||
25 | rendering such services, unless the act or
omission involved | ||||||
26 | willful or wanton conduct.
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1 | (d) As used in this Section "willful or wanton conduct" | ||||||
2 | means a course
of action which shows an actual or deliberate | ||||||
3 | intention to cause harm or
which, if not intentional, shows an | ||||||
4 | utter indifference to or conscious
disregard for the safety of | ||||||
5 | others or their property.
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6 | (e) Nothing in this Section is intended to bar any cause of | ||||||
7 | action
against the corporation or change the liability of the | ||||||
8 | corporation arising
out of an act or omission of any director, | ||||||
9 | officer or person exempt from
liability for negligence under | ||||||
10 | this Section.
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11 | (Source: P.A. 87-832.)
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