805 ILCS 105/112.60
2021 Illinois Compiled Statutes|Chapter 805 - BUSINESS ORGANIZATIONS|805 ILCS 105/ - General Not For Profit Corporation Act of 1986.|Article 12 - Dissolution

 (from Ch. 32, par. 112.60)Sec. 112.60.         Practice in actions for judicial  dissolution or removal and for alternative remedies.  (a)  The practice  in actions for judicial dissolution or removal shall be the same as in  other civil actions except as may be otherwise provided in  this Act.  Every action for judicial dissolution or removal shall be  commenced in the Circuit Court of the county in which either  the registered office or principal office of the corporation  is located.  Summons shall issue and be served as in other  civil actions.(b) In an action brought by the Attorney General under  subsection (a) of Section 112.50 of  this Act, if process is  returned not found, the Attorney General shall cause  publication to be made as in other civil actions in a  newspaper of general circulation published in the county in  which the action is filed.  The publication shall contain a  notice of the pendency of such action, the title of the  court, the title of the case, and the date on or after which  default may be entered.  The Attorney General may include in  one notice the names of any number of corporations against  which actions are then pending in the same court.  The  Attorney General shall cause a copy of such notice to be  mailed to the corporation at its registered office within 10  days after the first publication thereof.  The certificate  of the Attorney General of the mailing of such notice shall  be prima facie evidence thereof.  Such notice shall be  published at least once each week for two consecutive weeks  and the first publication thereof may begin at any time  after summons has been returned.  Unless a corporation shall  have been served with summons, no default shall be taken  against it earlier than 30 days after the first publication  of such notice.(c) It is not necessary to make members of the corporation  sought to be judicially dissolved parties to any such action  or proceeding unless relief is sought against them  personally.  The court, in its discretion, may order that  the members be made parties.(d) The circuit court in an action for judicial dissolution  may issue injunctions, appoint an interim receiver with such  powers and duties as the court, from time to time, may  direct, and take such other action as is necessary or  desirable to preserve the corporate assets and carry on the  affairs of the corporation until a full hearing can be had.(e) Upon a hearing and after finding that grounds for  judicial dissolution exist, and after such notice as the  court may direct to be given to all parties to the  proceeding and to any other parties in interest designated  by the court, the court may appoint a liquidating receiver  or receivers with authority to collect the assets of the  corporation, including all amounts owing to the corporation  by members.  Such liquidating receiver shall have authority,  subject to order of court, to sell, convey, and dispose of  all or any part of the assets of the corporation, either at  public or private sale, and to take such other action as is  necessary to wind up and liquidate the corporation's affairs  under Section 112.30 of this Act and to notify known  claimants under Section 112.75 of this Act.  The order  appointing such liquidating receiver shall state his or her  powers and duties.  Such powers and duties may be increased  or diminished at any time during the proceedings.(f) A receiver of a corporation appointed under the  provisions of this Section shall have authority to sue and  defend in all courts in his or her own name as receiver of  such corporation.(g) A receiver shall in all cases be a resident of this  State or a corporation authorized to act as receiver, which  corporation may be a domestic corporation or a foreign  corporation authorized to conduct affairs in this State, and  shall give such bond as the court may direct with such  sureties as the court may require.(h) During the pendency of the action, the court may  redesignate a receiver as a custodian, or a custodian as a  receiver, if such would be to the general advantage of the  corporation or its creditors.(i) The court shall allow reasonable compensation to the  receiver for services rendered and reimbursement or direct  payment of reasonable expenses from the assets of the  corporation or the proceeds of sale of the assets.(j) The assets of the corporation or the proceeds resulting  from a sale, conveyance, or other disposition thereof shall  be applied and distributed as follows:(1) All costs and expenses of the court proceedings  and all liabilities and obligations of the corporation shall  be paid, satisfied and discharged, or adequate provision  shall be made therefor;(2) Assets held by the corporation upon condition  requiring return, transfer or conveyance, which condition  occurs by reason of the dissolution or liquidation, shall be  returned, transferred or conveyed in accordance with such  requirements;(3) Assets held for a charitable, religious,  eleemosynary, benevolent, educational or similar use, but  not held upon a condition requiring return, transfer or  conveyance by reason of the dissolution or liquidation,  shall be transferred or conveyed to one or more domestic or  foreign corporations, societies or organizations engaged in  activities substantially similar to those of the dissolving  or liquidating corporation as the court may direct;(4) To the extent that the articles of incorporation  or the bylaws determine the distributive rights of members,  or any class or classes of members, or provide for  distribution to others, other assets, if any, shall be  distributed in accordance with such provisions;(5) Any remaining assets may be distributed to such  persons, societies, organizations or domestic or foreign  corporations, whether for profit or not for profit,  specified in the plan of distribution adopted as provided in  this Act, or where no plan of distribution has been adopted,  as the court may direct.    (Source: P.A. 84-1423.)