Sec. 203. Approval of conversion.

227 words·~1 min read·/il/chapter-805/act-415/203

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)A plan of conversion is not effective unless it has been approved:

(1)by a domestic converting entity:

(A)in accordance with the requirements, if any, in its organic rules for approval

of a conversion;

(B)if its organic rules do not provide for approval of a conversion, in accordance

with the requirements, if any, in its organic law and organic rules for approval of:

(i)in the case of an entity that is not a business corporation, a merger, as if

the conversion were a merger; or

(ii)in the case of a business corporation, a merger requiring approval by a

vote of the interest holders of the business corporation, as if the conversion were that type of merger; or

(C)if neither its organic law nor organic rules provide for approval of a

conversion or a merger described in subparagraph (B)(ii), by all of the interest holders of the entity entitled to vote on or consent to any matter; and

(2)in a record, by each interest holder of a domestic converting entity that will have

interest holder liability for liabilities that arise after the conversion becomes effective.

(b)A conversion of a foreign converting entity is not effective unless it is approved by the foreign entity in accordance with the law of the foreign entity's jurisdiction of organization.