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Public Act 095-0342
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| HB1146 Enrolled |
LRB095 08441 LCT 28617 b |
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AN ACT concerning business.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The General Not For Profit Corporation Act of |
1986 is amended by changing Section 108.70 as follows:
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(805 ILCS 105/108.70) (from Ch. 32, par. 108.70)
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Sec. 108.70. Limited Liability of directors, officers, |
board members,
and persons who serve without compensation.
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(a) No director or officer serving without compensation, |
other than
reimbursement for actual expenses, of a corporation |
organized under this
Act or any predecessor Act and exempt, or |
qualified for exemption, from
taxation pursuant to Section |
501(c) of the Internal Revenue Code of 1986,
as amended, shall |
be liable, and no cause of action may be brought, for
damages |
resulting from the exercise of judgment or discretion in |
connection
with the duties or responsibilities of such director |
or officer unless the
act or omission involved willful or |
wanton conduct.
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(b) No director of a corporation organized under this Act
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or any predecessor Act for the purposes identified in items |
(14), (19),
(21) and (22) of
subsection (a) of Section 103.05 |
of this Act, and exempt or qualified for
exemption from |
taxation pursuant to Section 501(c) of the Internal
Revenue |
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Code of 1986, as amended, shall be liable, and no cause of |
action
may be brought for damages resulting from the exercise |
of judgment or
discretion in connection with the duties or |
responsibilities of such
director, unless: (1) such director |
earns in excess of $5,000 per year from
his duties as director, |
other than reimbursement for actual expenses; or
(2) the act or |
omission involved willful or wanton conduct.
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(b-5) Except for willful and wanton conduct, no volunteer |
board member serving without compensation, other than |
reimbursement for actual expenses, of a corporation organized |
under this Act or any predecessor Act and exempt, or qualified |
for exemption, from taxation pursuant to Section 501(c)(3) of |
the Internal Revenue Code of 1986, as amended, shall be liable, |
and no action may be brought, 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.
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This subsection (b-5) shall not apply to any action taken |
by the Attorney General (i) in the exercise of his or her |
common law or statutory power and duty to protect charitable |
assets or (ii) in the exercise of his or her authority to |
enforce the laws of this State that apply to trustees of a |
charity, as that term is defined in the Charitable Trust Act |
and the Solicitation for Charity Act.
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(c) No person who, without compensation other than |
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reimbursement for
actual expenses, renders service to or for a |
corporation organized under
this Act or any predecessor Act and |
exempt or qualified for exemption
from taxation pursuant to
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Section 501(c)(3) of the Internal Revenue Code of 1986, as |
amended, shall
be liable, and no cause of action may be |
brought, for damages resulting
from an act or omission in |
rendering such services, unless the act or
omission involved |
willful or wanton conduct.
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(d) (Blank).
As used in this Section "willful or wanton |
conduct" means a course
of action which shows an actual or |
deliberate intention to cause harm or
which, if not |
intentional, shows an utter indifference to or conscious
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disregard for the safety of others or their property.
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(e) Nothing in this Section is intended to bar any cause of |
action
against the corporation or change the liability of the |
corporation arising
out of an act or omission of any director, |
officer or person exempt from
liability for negligence under |
this Section.
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(Source: P.A. 87-832.)
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