215 ILCS 5/286.1
2021 Illinois Compiled Statutes|Chapter 215 - INSURANCE|215 ILCS 5/ - Illinois Insurance Code.|Article XVII - Fraternal Benefit Societies

 (from Ch. 73, par. 898.1)(Section scheduled to be repealed on January 1, 2027)Sec. 286.1. Purposes and powers.(a) A society shall operate for the  benefit of members and their beneficiaries by:(1) Providing benefits as specified in Section 297.1     of this amendatory Act; and(2) Operating for one or more social, intellectual,     educational, charitable, benevolent, moral, fraternal, patriotic or religious purposes for the benefit of its members, which may also be extended to others. Such purposes may be carried out directly by the society or indirectly through subsidiary corporations or affiliated organizations.(b) Every society shall have the power to adopt laws and rules for the  government of the society, the admission of its members and the management  of its affairs. It shall have the power to change, alter, add to or amend  such laws and rules and shall have such other powers as are necessary and  incidental to carrying into effect the objects and purposes of the society.(c) A domestic  society that provides any of the benefits specified in Section 297.1 of this Code must be governed by a board of directors and managed by qualified officers subject to the following requirements:(1) The laws of a society must provide that:(i) the board of directors shall have the powers         and perform the duties ordinarily possessed and exercised by a board of directors under this Code, including, but not limited to, the authority and responsibility for the hiring and the discharge of a president, chief executive officer, or an equivalent position, except that a society that elects its president, chief executive officer, or equivalent position pursuant to its by-laws, as of the effective date of this amendatory Act of the 98th General Assembly, may continue to do so if it elects a president, chief executive officer, or equivalent position that meets qualifications set forth in a rule adopted by the Director; and(ii) the board of directors may remove a director         for cause and replace the director with another qualified director.After the effective date of this amendatory Act of     the 98th General Assembly, a domestic society shall amend its laws, as necessary, to comply with this paragraph (1) as soon as reasonably practicable, but in no event later than January 1, 2019.(2) A person convicted of a felony may not be a     director or an officer of a domestic society.(3) A society shall provide information regarding     qualifications of board candidates to voting members prior to the time of election.(4) Each newly elected director of a domestic society     shall participate in a board training or orientation program within 6 months after their election to the board that includes information regarding board duties and responsibilities.(5) At least annually, the board of directors shall     conduct a self-assessment.(6) Each domestic society shall establish an audit     committee.  The composition and responsibilities of the audit committee shall comply with the Illinois Administrative Code provisions relating to annual financial reporting. (Source: P.A. 98-814, eff. 1-1-15.)