Articles From Lynn A. Ellenberger | Illinois State Bar Association

The Illinois Legislature overcorrected Section 12.56(f) of the Illinois Business Corporation Act’s forced buy-out provision for close corporations By Lynn A. Ellenberger Business Advice and Financial Planning, February 2008 In 2005, a little-noticed amendment to the Illinois Business Corporation Act dramatically weakened the election remedy set out in 805 ILCS 5/12.56(f), preventing a shareholder of a closely held corporation, sued in a derivative lawsuit, from forcing a buy-out of plaintiff’s shares.

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