The Institute of Illinois Business Laws, which I chaired for 2014-2016, drafted and has supported HB 4361, which, with the able leadership of our legislative chairman Mike Hansen, has passed the Illinois House and Senate, and awaits action by Governor Rauner.

HB 4361  is an extensive reqrite of current Illinois law, designed to bring our statutes up to the standard established by national uniform LLC legislation. The bill establishes distinctions between membership interests; provides for the appointment of officers.; authorizes the use of oral operating agreements; makes changes concerning electronic signatures; makes changes regarding a member’s right to information; provides that members of limited liability company are not agents solely because of membership; expands the scope of operating agreements; makes changes concerning unauthorized distributions; provides that creditors acquire only distributional rights; requires judicial action for dissolution based upon illegality; abolishes certain statutory buyout rights; provides for domestication of foreign companies; provides for conversion of business entities into other forms; requires the filing of a post office address for service of process; and limits the ability of companies to transact business until an application is filed with the Secretary of State.