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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) Except for willful and wanton conduct, no volunteer | ||||||
9 | board member serving without compensation, other than | ||||||
10 | reimbursement for actual expenses, of a corporation organized | ||||||
11 | under this Act or any predecessor Act and exempt, or qualified | ||||||
12 | for exemption, from taxation pursuant to Section 501(c)(3) of | ||||||
13 | the Internal Revenue Code of 1986, as amended, shall be liable, | ||||||
14 | and no action may be brought, for damages resulting from any | ||||||
15 | action of the executive director concerning the false reporting | ||||||
16 | of or intentional tampering with financial records of the | ||||||
17 | organization, where the actions of the executive director | ||||||
18 | result in legal action.
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19 | This subsection (b-5) shall not apply to any action taken | ||||||
20 | by the Attorney General (i) in the exercise of his or her | ||||||
21 | common law or statutory power and duty to protect charitable | ||||||
22 | assets or (ii) in the exercise of his or her authority to | ||||||
23 | enforce the laws of this State that apply to trustees of a | ||||||
24 | charity, as that term is defined in the Charitable Trust Act | ||||||
25 | and the Solicitation for Charity Act.
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26 | (c) No person who, without compensation other than |
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1 | reimbursement for
actual expenses, renders service to or for a | ||||||
2 | corporation organized under
this Act or any predecessor Act and | ||||||
3 | exempt or qualified for exemption
from taxation pursuant to
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4 | Section 501(c)(3) of the Internal Revenue Code of 1986, as | ||||||
5 | amended, shall
be liable, and no cause of action may be | ||||||
6 | brought, for damages resulting
from an act or omission in | ||||||
7 | rendering such services, unless the act or
omission involved | ||||||
8 | willful or wanton conduct.
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9 | (d) (Blank).
As used in this Section "willful or wanton | ||||||
10 | conduct" means a course
of action which shows an actual or | ||||||
11 | deliberate intention to cause harm or
which, if not | ||||||
12 | intentional, shows an utter indifference to or conscious
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13 | disregard for the safety of others or their property.
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14 | (e) Nothing in this Section is intended to bar any cause of | ||||||
15 | action
against the corporation or change the liability of the | ||||||
16 | corporation arising
out of an act or omission of any director, | ||||||
17 | officer or person exempt from
liability for negligence under | ||||||
18 | this Section.
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19 | (Source: P.A. 87-832.)
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