Illinois Compiled Statutes
805 ILCS 5/ - Business Corporation Act of 1983.
Article 11 - Merger And Consolidation - Dissenters' Rights

(805 ILCS 5/Art. 11 heading)

 
(805 ILCS 5/11.05) (from Ch. 32, par. 11.05)
Sec. 11.05.
Procedure for merger or consolidation.
Any 2 or more corporations may merge into one of such corporations or consolidate
into a new corporation in the following manner:
The board of directors of each corporation shall, by resolution adopted
by a majority vote of the members of each such board, approve a plan of
merger or consolidation setting forth:
(a) The names of the corporations proposing to merge or consolidate, and the name of
the corporation into which they propose to merge, which is hereinafter
designated as the surviving corporation or to consolidate, which is hereinafter
designated as the new corporation.
(b) The terms and conditions of the proposed merger or consolidation and
the mode of carrying the same into effect.
(c) The manner and basis of converting the shares of each merging or consolidating
corporation into shares, obligations or other securities of the surviving
or new corporation, or into shares, obligations or other securities of any
other corporation which immediately before or immediately after the merger
or consolidation is effected is the owner of all of the outstanding voting
securities of the corporation named as the surviving or new corporation,
or into cash or other property, or into any combination of the foregoing.
(d) A statement of any changes in the articles of incorporation of the
surviving corporation to be effected by such merger or a statement of the
articles of incorporation of the new corporation.
(e) Such other provisions with respect to the proposed merger or consolidation
as are deemed necessary or desirable, including provisions, if any, under
which the proposed merger or consolidation may be abandoned prior to the
filing of articles of merger or consolidation by the Secretary of State.

(Source: P.A. 84-924.)
 
(805 ILCS 5/11.10) (from Ch. 32, par. 11.10)
Sec. 11.10.
Procedure for share exchange.
A corporation may acquire
all of the issued or outstanding shares of one or more classes of another
corporation in the following manner:
The board of directors of each corporation shall, by resolution adopted
by a majority vote of members of each such board, approve a plan of exchange
setting forth:
(a) The name of the corporation whose shares will be acquired and the
name of the acquiring corporation.
(b) The terms and conditions of the exchange.
(c) The manner and basis of exchanging the shares to be acquired for shares,
obligations, or other securities of the acquiring
corporation or for cash
or other property or for any combination of the foregoing.
(d) Other provisions considered necessary or desirable with respect to
the exchange, including provisions, if any, under which the proposed
exchange may be abandoned prior to the filing of articles of exchange by
the Secretary of State.
This Section does not limit the power of a corporation to acquire all or
part of the shares of one or more classes of another corporation through
a voluntary exchange or otherwise by agreement with the shareholders.

(Source: P.A. 85-1269.)
 
(805 ILCS 5/11.15) (from Ch. 32, par. 11.15)
Sec. 11.15.
Call of shareholders' meeting.
The board of directors of each corporation, upon approving such plan of
merger, consolidation or exchange, shall, if shareholders are
entitled to vote on such plan, by resolution, direct that the plan
be submitted to a vote at a meeting of shareholders, which may be either an
annual or a special meeting. Written notice shall be
given to each shareholder of record within the time and in the manner provided
by this Act for the giving of notice of meetings of shareholders. Such
notice, whether the meeting be an annual or special meeting, shall
include a copy or a summary
of the plan of merger, consolidation or exchange, as the case
may be, and shall also inform the shareholders of their right to dissent
in accordance with Section 11.70 and either enclose a copy of Section 11.70
or otherwise provide adequate notice of the procedure to dissent.

(Source: P.A. 83-1025.)
 
(805 ILCS 5/11.20) (from Ch. 32, par. 11.20)
Sec. 11.20.
Approval by shareholders.
(a) A vote of the shareholders entitled to vote
on the proposed plan of merger, consolidation or exchange shall be taken. The
plan of
merger, consolidation or exchange shall be approved upon receiving by each
corporation the affirmative
votes of at least two-thirds of the votes of
the shares
entitled to vote on the plan unless any
class or series of shares of any of such corporations is entitled to vote as a
class
on the plan in which event, as to such corporation, the plan of
merger, consolidation or exchange shall be approved upon receiving the
affirmative
votes of at least two-thirds of the votes of
the
shares of each such class or series of shares entitled to vote as a class
on the plan and of the votes of the total shares entitled
to vote on the plan. Any
class of shares of any such corporation shall be entitled to vote as a
class if the articles of incorporation so provide or if the plan of merger,
consolidation or exchange, as the case may be, contains
any provision which, if contained in a proposed amendment to articles of
incorporation, would entitle such class of shares to vote as a class.
(b) The articles of incorporation of any corporation may supersede the
two-thirds vote requirement of this Section as to that corporation by
specifying
any smaller or larger vote requirement not less than a majority of the votes
of the
shares entitled to vote on the issue and not less than a majority of the
votes of the shares of each class or series of shares
entitled to vote as
a class on the issue.
(c) No vote by the shareholders of a corporation that is a surviving party
to a plan of merger or that is the acquiring corporation in a plan of exchange
shall be required, unless its articles of incorporation provide to the
contrary, if:
(Source: P.A. 89-48, eff. 6-23-95.)
 
(805 ILCS 5/11.25) (from Ch. 32, par. 11.25)
Sec. 11.25.
Articles of merger, consolidation or exchange.
(a) Upon such
approval, articles of merger, consolidation or exchange shall be executed
by each corporation and filed in duplicate in accordance with Section 1.10
of this Act and shall set forth:
(b) When the provisions of this Section have been complied with, the
Secretary
of State shall file the articles of merger,
consolidation, or share exchange.

(Source: P.A. 92-33, eff. 7-1-01.)
 
(805 ILCS 5/11.30) (from Ch. 32, par. 11.30)
Sec. 11.30.
Merger of subsidiary corporation.
(a) Any corporation, in this
Section referred to as the "parent corporation", owning
at least 90% of the outstanding shares of each class of shares of any other
corporation or corporations, in this Section referred to
as
the "subsidiary corporation", may merge the subsidiary corporation
or corporations
into itself or into one of the subsidiary corporations, if each merging
subsidiary
corporation is solvent, without approval by a vote of the shareholders of
the parent corporation or the shareholders of any of the merging
subsidiary
corporations, upon completion of the requirements of this Section.
(b) The board of directors of the parent corporation shall, by
resolution,
approve a plan of merger setting forth:
(c) A copy of such plan of merger shall be mailed to each shareholder,
other
than the parent corporation, of a merging subsidiary corporation who was a
shareholder of record on the date of the adoption of the plan of merger,
together with a notice informing such shareholders of their right to dissent
and enclosing a copy of Section 11.70 or otherwise providing adequate notice
of the procedure to dissent.
(d) After 30 days following the mailing of a copy of the plan of
merger
and notice to the shareholders of each merging subsidiary corporation, or
upon the written consent to the merger or written waiver of the 30 day period
by the holders of all the outstanding shares of all shares of all such
subsidiary
corporations, the articles of merger shall be executed by the parent
corporation
and filed in duplicate in accordance with Section 1.10 of this Act and shall
set forth:
(e) When the provisions of this Section have been complied with,
the Secretary
of State shall file the articles of merger.
(f) Subject to Section 11.35 and provided that all the
conditions
hereinabove set forth have been met, any domestic corporation may be merged
into or may merge into itself any foreign corporation in the foregoing manner.

(Source: P.A. 92-33, eff. 7-1-01.)
 
(805 ILCS 5/11.31)
Sec. 11.31.
Merger of mid-tier bank holding company into subsidiary bank.
(a) A mid-tier bank holding company may merge into its subsidiary in the
following manner:
(b) For the purpose of this Section 11.31, "mid-tier bank holding company"
means a corporation (1) that owns 100% of the issued and outstanding shares of
each class of stock of a State bank, (2) that has no other subsidiaries, and
(3) of which 100% of the issued and outstanding shares are owned by a
parent bank holding company.

(Source: P.A. 90-301, eff. 8-1-97.)
 
(805 ILCS 5/11.32)
Sec. 11.32.
Merger or conversion of trust company into a State bank.
(a) A trust company may merge into a State bank in the following manner:
(b) Whenever a trust company shall effect a conversion into a State bank
pursuant to Section 30 of the Illinois Banking Act, it shall forthwith file
with the Secretary of State a copy of the certificate of conversion duly
authenticated by the Commissioner of Banks and Real Estate. The filing fee
shall be the same as for filing articles of merger.
(c) For the purpose of this Section 11.32, a "trust company" means a
corporation organized under this Act for the purpose of accepting and executing
trusts.

(Source: P.A. 90-301, eff. 8-1-97.)
 
(805 ILCS 5/11.35) (from Ch. 32, par. 11.35)
Sec. 11.35.

Merger, consolidation or share exchange of domestic and
foreign corporations. One or more foreign corporations and one or more
domestic corporations may be merged or consolidated or their shares
exchanged in the following manner, provided such merger, consolidation or
exchange is permitted by the laws of the state under which each such
foreign corporation is organized:
(a) Each domestic corporation shall comply with the provisions of this
Act with respect to the merger, consolidation or exchange, as the case may
be, of domestic corporations and each foreign corporation shall comply with
the applicable provisions of the laws of the state under which it is organized.
(b) If the surviving or new corporation, as the case may be, is to be
governed by the laws of any state other than this State, it shall comply
with the provisions of this Act with respect to foreign corporations if it
is to do business in this State, and in every case it shall file with the
Secretary of State of this State:
(1) an agreement that it may be served with process in this State in
any proceeding for the enforcement of any obligation of any domestic
corporation which is a party to such merger or consolidation and in any
proceeding for the enforcement of the rights of a dissenting shareholder of
any such domestic corporation against the surviving or new corporation,
(2) an irrevocable appointment of the Secretary of State of this
State as its agent to accept service of process in any such proceeding, and
(3) an agreement that it will promptly pay to the dissenting
shareholders of any such domestic corporation the amount, if any, to which
they shall be entitled under the provisions of this Act with respect to the
rights of dissenting shareholders.
The effect of such merger or consolidation shall be the same as in the
case of the merger or consolidation of domestic corporations.
(c) If the acquiring corporation in a share exchange is governed by the
laws of any state other than this State, it shall comply with the provisions
of this Act with respect to foreign corporations if it is to do business
in this State and, in every case, it shall file with the Secretary of State
of this State:
(1) an agreement that it may be served with process in this State in any
proceeding for the enforcement of the rights of a dissenting shareholder
of a domestic corporation whose shares are acquired against the acquiring corporation.
(2) an irrevocable appointment of the Secretary of State of this State
as its agent to accept service of process in any such proceeding, and
(3) an agreement that it will promptly pay to the dissenting shareholders
of such domestic corporation the amount, if any, to which they shall be
entitled under the provisions of this Act with respect to the rights of
dissenting shareholders.

(Source: P.A. 84-1308.)
 
(805 ILCS 5/11.37) (from Ch. 32, par. 11.37)
Sec. 11.37. Merger or consolidation of domestic or foreign
corporations and domestic not for profit corporations.
(a) One or more
domestic corporations or one or more foreign corporations may merge into a
domestic not for profit corporation subject to the provisions of the
General Not For Profit Corporation Act of 1986, as amended, provided that
in the case of a foreign corporation for profit, such merger is permitted by
the laws of the State or country under which
such foreign corporation for profit is organized.
(b) Each domestic corporation shall comply with the provisions of this
Act with respect to the merger of domestic corporations,
each domestic not for profit corporation shall comply with the provisions
of the General Not For Profit Corporation Act of 1986, as amended. With
respect to merger of domestic not for profit corporations,
each foreign corporation for profit shall comply with the laws of the state
or country under which it is organized, and each foreign corporation for
profit having authority to transact business in this State
under the provisions of this Act shall comply with the provisions of this
Act with respect to merger of foreign corporations for
profit.
(c) The plan of merger shall set forth, in addition to
all matters required by Section 11.05 of this Act, the manner and basis of
converting shares of each merging domestic or foreign
corporation for profit into membership or other interests of the surviving domestic not for profit corporation, or into cash, or into property,
or into any combination of the foregoing.
(d) The effect of a merger under this Section shall be
the same as in the case of a merger of domestic
corporations as set forth in subsection (a) of Section 11.50 of this Act.
(e) When such merger has been effected, the shares of
the corporation or corporations to be converted under the terms of the plan
cease to exist. The holders of those shares are entitled only to the
membership or other interests, cash, or other property or combination
thereof, into which those shares have been converted in accordance with the
plan, subject to any dissenters' rights under Section 11.70 of this Act.

(Source: P.A. 96-66, eff. 1-1-10.)
 
(805 ILCS 5/11.39)
Sec. 11.39. Merger of domestic corporation and limited liability entities.
(a) Any one or more domestic corporations may merge with or into one
or more limited liability entities of this State, any other state or
states of the
United States, or the District of Columbia, if the laws of the other state
or states
or the District of Columbia permit the merger. The domestic corporation or
corporations and the limited liability entity or entities may merge with or
into a corporation, which may be any one of these corporations, or they may
merge
with or into a limited liability entity, which may be any one of these limited
liability entities, which shall be a domestic corporation or limited liability entity
of this
State, any other state of the United States, or the District of Columbia,
which
permits the merger pursuant to a plan of merger complying with and approved in
accordance with this Section.
(b) The plan of merger must set forth the following:
(c) The plan required by subsection (b) of this Section shall be adopted and
approved
by the constituent corporation or corporations in the same manner as is
provided in
Sections 11.05, 11.15, and 11.20 of this Act and, in the case of a limited
liability
entity, in accordance with the terms of its operating or partnership agreement, if any, and
in
accordance with the laws under which it was formed.
(d) Upon this approval, articles of merger shall be executed by each
constituent corporation and limited liability entity and filed with the
Secretary of State. The merger shall become
effective for all purposes of the laws of this State when and as provided in
Section
11.40 of this Act with respect to the merger of corporations of this State.
(e) If the surviving entity is to be governed by the laws of the District of
Columbia or any state other than this State, it shall file with the
Secretary of
State of this State an agreement that it may be served with process in this
State in
any proceeding for enforcement of any obligation of any constituent corporation
or
limited liability entity of this State, as well as for enforcement of any
obligation of
the surviving corporation or limited liability entity arising from the merger,
including any suit or other proceeding to enforce the shareholders right to
dissent as
provided in Section 11.70 of this Act, and shall irrevocably appoint the
Secretary of
State of this State as its agent to accept service of process in any such suit
or other
proceedings.
(f) Section 11.50 of this Act shall, insofar as it is applicable, apply to
mergers between domestic corporations and limited liability entities.
(g) In any merger under this Section, the surviving entity shall not
engage in any business or exercise any power that a domestic corporation or
domestic limited liability entity may not otherwise engage in or exercise in
this State. Furthermore, the surviving entity shall be governed by the
ownership and control restrictions in Illinois law applicable to that type of
entity.

(Source: P.A. 102-282, eff. 1-1-22.)
 
(805 ILCS 5/11.40) (from Ch. 32, par. 11.40)
Sec. 11.40.
Effective date of merger, consolidation or exchange.
The merger, consolidation or exchange shall become effective upon filing of
the articles of merger, consolidation or
exchange by the Secretary of State or on a later specified
date, not more than
30 days subsequent to the filing of the articles of merger, consolidation or
exchange by the Secretary of
State, as may be provided for in the plan.

(Source: P.A. 92-33, eff. 7-1-01.)
 
(805 ILCS 5/11.45)
Sec. 11.45. (Repealed).


(Source: P.A. 93-59, eff. 7-1-03. Repealed by P.A. 96-1121, eff. 1-1-11.)
 
(805 ILCS 5/11.50) (from Ch. 32, par. 11.50)
Sec. 11.50.
Effect of merger, consolidation or exchange.
(a) When
such merger or consolidation has been effected:
(1) The several corporations parties to the plan of merger or
consolidation shall be a single corporation, which, in the case of a
merger, is that corporation designated in the plan of merger as the
surviving corporation, and, in the case of a consolidation, is the new
corporation provided for in the plan of consolidation.
(2) The separate existence of all corporations parties to the plan of
merger or consolidation, except the surviving or new corporation, shall
cease.
(3) Such surviving or new corporation has all the rights, privileges,
immunities, and powers and is subject to all the duties and liabilities
of a corporation organized under this Act.
(4) Such surviving or new corporation shall thereupon and thereafter
possess all the rights, privileges, immunities, and franchises, as of
a public or a private nature, of each of the merging or consolidating
corporations; and all property, real, personal, and mixed, and all debts
due on whatever account, including subscriptions to shares, and all other
choses in action, and all and every other interest, of or belonging to or
due to each of the corporations so merged or consolidated, shall be taken
and deemed to be transferred to and vested in such single corporation
without further act or deed; and the title to any real estate, or any
interest therein, vested in any of such corporations shall not revert or be
in any way impaired by reason of such merger or consolidation.
(5) Such surviving or new corporation shall thenceforth be responsible
and liable for all the liabilities and obligations of each of the
corporations so merged or consolidated; and any claim existing or action or
proceeding pending by or against any of such corporations may be prosecuted
to judgment as if such merger or consolidation had not taken place, or such
surviving or new corporation may be substituted in its place. Neither the
rights of creditors nor any liens upon the property of any such
corporations shall be impaired by such merger or consolidation.
(6) In case of a merger, the articles of incorporation of the surviving
corporation are deemed to be amended to the extent, if any, that changes in
its articles are stated in the articles of merger; and, in the case of a
consolidation, the articles of incorporation of the new corporation are
set forth in the articles of consolidation.
(b) When such merger, consolidation or exchange has been effected, the
shares of the corporation or corporations to be converted or exchanged under
the terms of the plan cease to exist in the case of a merger or consolidation,
or are deemed to be exchanged in the case of an exchange. The holders of
those shares are entitled only to the money, securities or other property
into which those shares have been converted or for which those shares have
been exchanged in accordance with the plan, subject to any dissenters' rights
under Section 11.70 of this Act.
(c) The merger, consolidation or exchange of shares of a corporation
shall not: (i) prohibit the State from prosecuting a corporation
criminally by indictment, information or complaint filed subsequent to its
merger, consolidation or exchange for any offenses it committed prior thereto;
or (ii) abate or suspend a criminal proceeding which is pending against a
corporation on the effective date of said merger, consolidation or exchange.
(d) Where a corporation has been criminally prosecuted pursuant to
subsection (c) herein, and has been convicted and fined for a criminal
offense, the surviving or new corporation shall be responsible for the
payment of the fine only to the extent of any assets contributed to the
merger, consolidation or exchange of shares by the convicted corporation,
provided that the surviving or new corporation, at the time of acquisition,
did not know, or have reason to know, of the criminal acts which were the
basis for the criminal action. In the event the surviving or new
corporation did know, or have reason to know, of the criminal acts which
were the basis for the criminal action, it shall be responsible for the entire
amount of the fine. Nothing herein shall prohibit the State from collecting
a fine which was assessed against a corporation from a shareholder to the
extent that the corporation may have distributed assets to the shareholder.

(Source: P.A. 85-1440.)
 
(805 ILCS 5/11.55) (from Ch. 32, par. 11.55)
Sec. 11.55.

Sale,
lease, exchange, or mortgage of assets in usual and regular course of
business.
The sale, lease, exchange, mortgage, pledge, or other disposition of
all, or substantially all, the property and assets of a corporation, when
made in the usual and regular course of the business of the corporation,
may be made upon such terms and conditions and for such considerations,
which may consist, in whole or in part, of money or property, real or
personal, including shares of any other corporation, domestic or foreign,
as shall be authorized by its board of directors; and in such case no
authorization or consent of the shareholders shall be required.

(Source: P.A. 83-1025.)
 
(805 ILCS 5/11.60) (from Ch. 32, par. 11.60)
Sec. 11.60.

Sale, lease or exchange of assets, other than in usual
and regular course of business.
A sale, lease, exchange, or other disposition of all,
or substantially all, the property and assets, with or without the good
will, of a corporation, if not made in the usual and regular course of its
business, may be made upon such terms and conditions and for such
consideration, which may consist, in whole or in part, of money or
property, real or personal, including shares of any other corporation,
domestic or foreign, as may be authorized in the following manner:
(a) The board of directors shall adopt a resolution recommending such
sale, lease, exchange, or other disposition and directing
the submission thereof to a vote at a meeting of shareholders, which may be
either an annual or a special meeting.
(b) Written notice stating that the purpose, or one of the
purposes, of such meeting is to consider the sale, lease, exchange,
or other disposition of all, or substantially all, the
property and assets of the corporation shall be given to each shareholder
of record within the time and in the
manner provided by this Act for the giving of notice of meetings of
shareholders and shall also inform the shareholders of their right to
dissent and either enclose a copy of Section 11.70 or otherwise provide
adequate notice of the procedure to dissent. If such meeting be an annual
meeting, such purpose may be
included in the notice of such annual meeting.
(c) At such meeting the shareholders entitled to vote on such matter may
authorize such sale, lease, exchange, or other disposition and fix, or may
authorize the board of directors to fix, any or all of the terms and conditions
thereof and the consideration to be received by the corporation therefor.
Such authorization shall require the affirmative vote of the holders of at
least two-thirds of the outstanding shares entitled to vote on such matter
unless any class or series of shares is entitled to vote as a class in
respect thereof, in which event such authorization shall require the
affirmative vote of the holders of at least two-thirds of the outstanding
shares of each class or series of shares entitled to vote as a class on such matter,
and of the total outstanding shares entitled to vote on such matter.
(d) After such authorization by a vote of shareholders, the board of
directors nevertheless, in its discretion, may abandon such sale, lease,
exchange, or other disposition of assets, subject to the
rights of third parties under any contracts relating thereto, without
further action or approval by shareholders.
(e) The articles of incorporation of a corporation may supersede the two-thirds
vote requirement of this Section by specifying any smaller or larger vote
requirement, not less than a majority of the outstanding shares entitled
to vote on the matter and not less than a majority of the outstanding shares
of each class of shares entitled to vote as a class on the matter.

(Source: P.A. 83-1025.)
 
(805 ILCS 5/11.65) (from Ch. 32, par. 11.65)
Sec. 11.65.
Right to dissent.
(a) A shareholder of a corporation is
entitled to dissent from, and obtain payment for his or her shares in the
event of any of the following corporate actions:
(1) consummation of a plan of merger or consolidation or a plan of share
exchange to which the corporation is a party if (i) shareholder authorization
is required for the merger or consolidation or the share exchange by Section
11.20 or the articles of incorporation or (ii) the corporation is a subsidiary
that is merged with its parent or another subsidiary under Section 11.30;
(2) consummation of a sale, lease or exchange of all, or substantially
all, of the property and assets of the corporation other than in the usual
and regular course of business;
(3) an amendment of the articles of incorporation that materially and
adversely affects rights in respect of a dissenter's shares because it:
(i) alters or abolishes a preferential right of such shares;
(ii) alters or abolishes a right in respect of redemption, including a
provision respecting a sinking fund for the redemption or repurchase, of such shares;
(iii) in the case of a corporation incorporated prior to January 1, 1982,
limits or eliminates cumulative voting rights with respect to such shares; or
(4) any other corporate action taken pursuant to a shareholder vote if
the articles of incorporation, by-laws, or a resolution of the board of
directors provide that shareholders are entitled to dissent and obtain payment
for their shares in accordance with the procedures set forth in Section
11.70 or as may be otherwise provided in the articles, by-laws or resolution.
(b) A shareholder entitled to dissent and obtain payment for his or her
shares under this Section may not challenge the corporate action creating
his or her entitlement unless the action is fraudulent with respect to the
shareholder or the corporation or constitutes a breach of a fiduciary duty
owed to the shareholder.
(c) A record owner of shares may assert dissenters' rights as to fewer
than all the shares recorded in such person's name only if such person dissents
with respect to all shares beneficially owned by any one person and notifies
the corporation in writing of the name and address of each person on whose
behalf the record owner asserts dissenters' rights. The rights of a partial
dissenter are determined as if the shares as to which
dissent is made and the other shares were recorded in the names of different
shareholders. A beneficial owner of shares who is not the record owner
may assert dissenters' rights as to shares held on such person's behalf
only if the beneficial owner submits to the corporation the record owner's
written consent to the dissent before or at the same time the beneficial
owner asserts dissenters' rights.

(Source: P.A. 85-1269.)
 
(805 ILCS 5/11.70) (from Ch. 32, par. 11.70)
Sec. 11.70. Procedure to Dissent.
(a) If the corporate action giving rise to the right to
dissent is to be approved at a meeting of shareholders, the notice of meeting
shall inform the shareholders of their right to dissent and the procedure
to dissent. If, prior to the meeting, the corporation furnishes to the
shareholders material information with respect to the transaction that
will objectively enable a shareholder to vote on the transaction and to
determine whether or not to exercise dissenters' rights, a shareholder may
assert dissenters' rights only if the shareholder delivers to the corporation
before the vote is taken a written demand for payment for his or her shares
if the proposed action is consummated, and the shareholder does not
vote in favor of the proposed action.
(b) If the corporate action giving rise to the right to dissent is not
to be approved at a meeting of shareholders, the notice to shareholders
describing the action taken under Section 11.30 or Section 7.10 shall inform
the shareholders of their right to dissent and the procedure to dissent.
If, prior to or concurrently with the notice, the corporation furnishes
to the shareholders material information with respect to the transaction
that will objectively enable a shareholder to determine whether or not to
exercise dissenters' rights, a shareholder may assert dissenter's rights
only if he or she delivers to the corporation within 30 days from the date
of mailing the notice a written demand for payment for his or her shares.
(c) Within 10 days after the date on which the corporate action giving
rise to the right to dissent is effective or 30 days after the shareholder
delivers to the corporation the written demand for payment, whichever is
later, the corporation shall send each shareholder who has delivered a written
demand for payment a statement setting forth the opinion of the corporation
as to the estimated fair value of the shares, the corporation's latest balance
sheet as of the end of a fiscal year ending not earlier than 16 months
before the delivery of the statement, together with the statement of income
for that year and the latest available interim financial statements, and
either a commitment to pay for the shares of the dissenting shareholder
at the estimated fair value thereof upon transmittal to the corporation of the
certificate or certificates, or other evidence of ownership, with respect
to the shares, or instructions to the dissenting shareholder to sell
his or her shares within 10 days after delivery of the corporation's statement
to the shareholder. The corporation may instruct the shareholder to sell
only if there is a public market for the shares at which the shares may
be readily sold. If the shareholder does not sell within that 10 day
period after being so instructed by the corporation, for purposes of this
Section the shareholder shall be deemed to have sold his or her shares at
the average closing price of the shares, if listed on a national exchange,
or the average of the bid and asked price with respect to the shares quoted
by a principal market maker, if not listed on a national exchange, during
that 10 day period.
(d) A shareholder who makes written demand for payment under this
Section retains all other rights of a shareholder until those rights are
cancelled or modified by the consummation of the proposed corporate action.
Upon consummation of that action, the corporation shall pay to each
dissenter who transmits to the corporation the certificate or other
evidence of ownership of the shares the amount the corporation estimates to
be the fair value of the shares, plus accrued interest, accompanied by a
written explanation of how the interest was calculated.
(e) If the shareholder does not agree with the opinion of the
corporation as to the estimated fair value of the shares or the amount of
interest due, the shareholder, within 30 days from the delivery of the
corporation's statement of value, shall notify the corporation in writing
of the shareholder's estimated fair value and amount of interest due and
demand payment for the difference between the shareholder's estimate of
fair value and interest due and the amount of the payment by the
corporation or the proceeds of sale by the shareholder, whichever is
applicable because of the procedure for which the corporation opted
pursuant to subsection (c).
(f) If, within 60 days from delivery to the corporation of the
shareholder notification of estimate of fair value of the shares and
interest due, the corporation and the dissenting shareholder have not
agreed in writing upon the fair value of the shares and interest due, the
corporation shall either pay the difference in value demanded by the
shareholder, with interest, or file a petition in the circuit court of the
county in which either the registered office or the principal office of the
corporation is located, requesting the court to determine the fair value of
the shares and interest due. The corporation shall make all dissenters,
whether or not residents of this State, whose demands remain unsettled
parties to the proceeding as an action against their shares and all parties
shall be served with a copy of the petition. Nonresidents may be served by
registered or certified mail or by publication as provided by law. Failure
of the corporation to commence an action pursuant to this Section shall not
limit or affect the right of the dissenting shareholders to otherwise
commence an action as permitted by law.
(g) The jurisdiction of the court in which the proceeding is commenced
under subsection (f) by a corporation is plenary and exclusive. The court
may appoint one or more persons as appraisers to receive evidence and
recommend decision on the question of fair value. The appraisers have the
power described in the order appointing them, or in any amendment to it.
(h) Each dissenter made a party to the proceeding is entitled to
judgment for the amount, if any, by which the court finds that the fair
value of his or her shares, plus interest, exceeds the amount paid by the
corporation or the proceeds of sale by the shareholder, whichever amount
is applicable.
(i) The court, in a proceeding commenced under subsection
(f), shall determine all costs of the proceeding, including the reasonable
compensation and expenses of the appraisers, if any, appointed by the
court under subsection (g), but shall exclude the fees and expenses of
counsel and experts for the respective parties. If the fair value of the
shares as determined by the court materially exceeds the amount which the
corporation estimated to be the fair value of the shares or if no estimate
was made in accordance with subsection (c), then all or any part of the
costs may be assessed against the corporation. If the amount which any
dissenter estimated to be the fair value of the shares materially exceeds
the fair value of the shares as determined by the court, then all or any
part of the costs may be assessed against that dissenter. The court may
also assess the fees and expenses of counsel and experts for the respective
parties, in amounts the court finds equitable, as follows:
If the court finds that the services of counsel for any dissenter were of
substantial benefit to other dissenters similarly situated and that the
fees for those services should not be assessed against the corporation, the
court may award to that counsel reasonable fees to be paid out of the
amounts awarded to the dissenters who are benefited. Except as otherwise
provided in this Section, the practice, procedure, judgment and costs shall
be governed by the Code of Civil Procedure.
(j) As used in this Section:
(Source: P.A. 94-889, eff. 1-1-07.)
 
(805 ILCS 5/11.75) (from Ch. 32, par. 11.75)
Sec. 11.75.
Business combinations with interested shareholders.
(a) Notwithstanding any other provisions of this Act, a corporation (as
defined in this Section 11.75) shall not engage in any business combination
with any interested shareholder for a period of 3 years following the time
that such shareholder became an interested shareholder, unless (1) prior to
such time the board of directors of the corporation approved
either the
business combination or the transaction which resulted in the shareholder
becoming an interested shareholder, or (2) upon consummation of the
transaction which resulted in the shareholder becoming an interested
shareholder, the interested shareholder owned at least 85% of the voting
shares of the corporation outstanding at the time the transaction
commenced, excluding for purposes of determining the number of shares
outstanding those shares owned (i) by persons who are directors and also
officers and (ii) employee stock plans in which employee participants do
not have the right to determine confidentially whether shares held subject
to the plan will be tendered in a tender or exchange offer, or (3) at
or
subsequent to such time the business combination is approved by
the board
of directors and authorized at an annual or special meeting of
shareholders, and not by written consent, by the affirmative vote of at
least 66 2/3% of the outstanding voting shares which are not owned by the
interested shareholder.
(b) The restrictions contained in this Section shall not apply if:
(c) As used in this Section 11.75 only, the term:
(d) No provision of a certificate of incorporation or by-law shall
require, for any vote of shareholders required by this Section a greater
vote of shareholders than that specified in this Section.
(e) The provisions of this Section 11.75 are severable and any provision
held invalid shall not affect or impair any of the remaining provisions of
this Section.

(Source: P.A. 93-59, eff. 7-1-03.)

Structure Illinois Compiled Statutes