95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
HB1146


 
Introduced , by Rep. Charles E. Jefferson
 
SYNOPSIS AS INTRODUCED:
 		














805 ILCS 105/108.70
  from Ch. 32, par. 108.70







    Amends the General Not For Profit Corporation Act of 1986.  Limits the liability of a volunteer board member serving without compensation, other than reimbursement for actual expenses, for damages resulting from any action of the executive director concerning the false reporting of  or intentional tampering with financial records of the organization, where the actions of the executive director result in legal action.
















LRB095 08441 LCT 28617 b

















 


 


A BILL FOR









 











HB1146

LRB095 08441 LCT 28617 b






1
    AN ACT concerning business.

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


 
4
    Section 5. The General Not For Profit Corporation Act of 
5
1986 is amended  by changing Section 108.70 as follows:
 



6
    (805 ILCS 105/108.70)  (from Ch. 32, par. 108.70)



7
    Sec. 108.70. Limited Liability of directors, officers, 
8
board members,
and persons who serve without compensation.

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.

19
    (b) No director of a corporation organized under this Act

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 
 


 






HB1146
- 2 -
LRB095 08441 LCT 28617 b




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.

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.

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

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.

 


 






HB1146
- 3 -
LRB095 08441 LCT 28617 b




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.

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.

11
(Source: P.A. 87-832.)