- Published: Friday, August 06, 2021 04:19 PM
SPRINGFIELD – State Senator Julie Morrison (D-Lake Forest) championed a law signed Friday that allows Illinois corporations to safely and effectively hold shareholder meetings virtually.
“While a lot of our favorite activities were halted during the pandemic – much of our daily work and meetings weren’t,” Morrison said. “Corporations must be able to have transparent and safe communications between their boards and shareholders.”
The law 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 laws allowing remote shareholder meetings.
“This law 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 was signed Friday and takes immediate effect.
