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Public Act 095-0342 |
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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 |
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 |
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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