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92nd General Assembly

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Public Act 92-0638

SB1540 Enrolled                                LRB9210697DHgc

    AN ACT in relation to corporations.

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

    Section  5.  The  Business  Corporation  Act  of  1983 is
amended by changing Section 2.35 as follows:

    (805 ILCS 5/2.35) (from Ch. 32, par. 2.35)
    Sec. 2.35.  Meetings of  the  board  of  directors  of  a
residential  cooperative  corporation  containing  24 or more
units and located in a city containing  more  than  1,000,000
inhabitants  shall  be  open  to any residential shareholder,
except for the portion of any meeting  held  (i)  to  discuss
litigation  when  an  action  against  or  on  behalf  of the
corporation has been filed and  is  pending  in  a  court  or
administrative tribunal, or when the board of directors finds
that such an action is probable or imminent, (ii) to consider
information regarding appointment, employment or dismissal of
an  employee,  or  (iii)  to  discuss violations of rules and
regulations of the corporation by a residential  shareholder.
Any residential shareholder may record by tape, film or other
means  the  proceedings  at such meetings or portions thereof
required to be open by this Section. The board may  prescribe
reasonable  rules and regulations to govern the right to make
such recordings. Notice of such meetings shall be  mailed  or
delivered  at  least 48 hours prior thereto, unless a written
waiver of such notice is signed  by  the  person  or  persons
entitled   to   such  notice  pursuant  to  the  articles  of
incorporation, bylaws, or other instrument before the meeting
is convened. Copies of notices of meetings of  the  board  of
directors  shall  be  posted  in  entranceways, elevators, or
other conspicuous places in the  residential  cooperative  at
least  48  hours  prior  to  the  meeting  of  the  board  of
directors.  If  there  is no common entranceway for 7 or more
apartments, the board of directors may designate one or  more
locations in the proximity of such units where the notices of
meetings  shall  be  posted.  For  purposes  of this Section,
"meeting of the board of directors" means any gathering of  a
quorum  of  the  members  of  the  board  of directors of the
residential cooperative held for the  purpose  of  discussing
business  of  the cooperative. The provisions of this Section
shall apply to any residential cooperative containing  24  or
more  units  and  located  in  a  city  containing  more than
1,000,000 inhabitants  situated  in  the  State  of  Illinois
regardless of where such cooperative may be incorporated.
(Source: P.A. 85-1269.)

    Section  10.  The  General Not For Profit Corporation Act
of 1986 is amended by changing Section 108.21 as follows:

    (805 ILCS 105/108.21) (from Ch. 32, par. 108.21)
    Sec. 108.21.  Meetings of the board  of  directors  of  a
residential cooperative not-for-profit corporation containing
24  or  more units and located in a city containing more than
1,000,000 inhabitants or containing 50 or more single  family
units  with  individual  unit legal descriptions based upon a
recorded plat of a subdivision and located in a county with a
population between 780,000 and 3,000,000 inhabitants shall be
open to any member, except for the  portion  of  any  meeting
held  (i)  to discuss litigation when an action against or on
behalf of the corporation has been filed and is pending in  a
court  or  administrative  tribunal,  or  when  the  board of
directors finds that such an action is probable or  imminent,
(ii)   to   consider   information   regarding   appointment,
employment  or  dismissal of an employee, or (iii) to discuss
violations of rules and regulations of the corporation  by  a
residential  shareholder. Any member may record by tape, film
or other means the proceedings at such meetings  or  portions
thereof  required  to  be open by this Section. The board may
prescribe reasonable rules  and  regulations  to  govern  the
right  to make such recordings. Notice of such meetings shall
be mailed or delivered  at  least  48  hours  prior  thereto,
unless  a  written  waiver  of  such  notice is signed by the
person or persons entitled to such  notice  pursuant  to  the
articles  of  incorporation,  bylaws, other instrument before
the meeting is convened. Copies of notices of meetings of the
board  of  directors  shall  be   posted   in   entranceways,
elevators,  or  other  conspicuous  places in the residential
cooperative at least 48 hours prior to  the  meeting  of  the
board  of  directors. If there is no common entranceway for 7
or more apartments, the board of directors may designate  one
or  more  locations  in the proximity of such units where the
notices of meetings shall be posted.  For  purposes  of  this
Section,  "meeting  of  the  board  of  directors"  means any
gathering of  a  quorum  of  the  members  of  the  board  of
directors of the residential cooperative held for the purpose
of  discussing business of the cooperative. The provisions of
this Section  shall  apply  to  any  residential  cooperative
containing  24 or more units and located in a city containing
more than 1,000,000 inhabitants  or  containing  50  or  more
single family units and located in a county with a population
between  780,000  and  3,000,000  inhabitants situated in the
State of Illinois regardless of where such cooperative may be
incorporated.
(Source: P.A. 91-465, eff. 8-6-99.)
    Passed in the General Assembly May 07, 2002.
    Approved July 11, 2002.
    Effective January 01, 2003.

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