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morrison 012721SPRINGFIELD – State Senator Julie Morrison (D-Lake Forest) is sponsoring a measure that allows Illinois corporations to safely and effectively hold shareholder meetings virtually.

“While a lot of our favorite activities have been halted – much of our daily work and meetings haven’t,” Morrison said. “Corporations must be able to have transparent and safe communications between their boards and shareholders.”

The measure amends the Business Corporation Act to allow boards of directors of corporations to host shareholder meetings through virtual communication. If a corporation chooses to use these means, they must implement measures to allow shareholders to view, participate and vote.

 

The legislation comes after some Illinois corporations raised safety concerns about the ongoing COVID-19 pandemic. They argue their work can be done just as effectively via remote communication. Other states, including New York, Delaware and New Jersey, have already adopted remote shareholder meeting laws.

 

“This measure simply allows those businesses and shareholders to do what most of us have been doing for nearly a year – meet virtually,” Morrison said.

Senate Bill 116 passed the Senate Judiciary committee Tuesday.