90th General Assembly
Summary of HB0613
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House Sponsors:
CROSS-LANG-SCOTT.

Senate Sponsors:
CULLERTON

Short description: 
CORPORATIONS-COMBINATIONS-VOTE                                             

Synopsis of Bill as introduced:
        Amends the Business Corporation Act of 1983 in  relation  to  the      
   vote  required  for  certain  business  combinations.   Increases  the      
   threshold  share ownership level before a shareholder is considered to      
   be an interested  shareholder  from  10%  to  15%.   Provides  that  a      
   corporation may elect to not be subject to the vote requirements by an      
   action  of  its  board of directors within 90 days after the effective      
   date of this amendatory Act.  Provides that a corporation may  in  its      
   articles  of  incorporation  elect  to  not  be  subject  to  the vote      
   requirements.                                                               
        SENATE AMENDMENT NO. 1.                                                
          Adds reference to:                                                   
          805 ILCS 5/11.75                from Ch. 32, par. 11.75              
        Provides that the term "interested shareholder" does not  include      
   a  person  who  owned shares in excess of the 15% limitation and is an      
   affiliate or associate of the corporation and so continued to  be  the      
   owner  of  15%  or  more  of  the  outstanding  voting  shares  of the      
   corporation.   Provides  that  the   term   "associate"   includes   a      
   corporation,  partnership, unincorporated association, or other entity      
   (instead of a corporation or organization) of which the  person  is  a      
   director,  officer,  or  partner  or  is the owner of 20% or more of a      
   class of voting shares.  Adds definitions  for  "shares"  and  "voting      
   shares".   Further  amends the Business Corporation Act of 1983 in the      
   provisions   concerning   business   combinations   with    interested      
   shareholders.    Provides   that   an  amendment  shall  be  effective      
   immediately in the case of a corporation that has never had a class of      
   voting shares that falls within certain categories and has not elected      
   to be governed by these provisions (instead  of  not  being  effective      
   until   12   months   after  adoption).   Adds  an  exception  to  the      
   restrictions in these provisions for if the  business  combination  is      
   with an interested shareholder who became an interested shareholder at      
   a  time  when  the  restrictions  did not apply.  Makes changes to the      
   definitions of "associate", "control", "interested  shareholder",  and      
   "voting  shares".   Adds  a  definition  for  "shares".   Makes  other      
   changes.                                                                    
 
Last action on Bill: PUBLIC ACT.............................. 90-0461

   Last action date: 97-08-17

           Location: House

 Amendments to Bill: AMENDMENTS ADOPTED: HOUSE -   0     SENATE -   1


   END OF INQUIRY 



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