(805 ILCS 315/10)
(from Ch. 32, par. 449)
Each association incorporated under this Act must, within thirty
(30) days after its incorporation, adopt for its government and management,
a code of by-laws, not inconsistent with the powers granted by this Act. A
majority vote of the directors named in the articles of incorporation, or
of the members or stockholders, or their written assent, is necessary to
adopt such by-laws. By-laws shall also provide that the by-laws may be
amended by the Board of Directors or by the members and/or stockholders;
and shall provide the voting power by which amendments may be made. Each
association, under its by-laws, may provide for any or all of following
(a) The time, place and manner of calling and conducting its meetings,
which meetings, and the meetings of its directors, may be held either
within or without the State.
(b) The number of stockholders or members constituting a quorum.
(c) The right of members or stockholders to vote by proxy or by mail or
both; and the conditions, manner, form, and effects of such votes.
(d) The number of directors constituting a quorum.
(e) The qualifications, compensation and duties and term of office of
directors and officers; time of their election and the mode and manner of
giving notice thereof.
(f) Penalties for violations of the by-laws.
(g) The amount of entrance, organization and membership fees, if any;
the manner and method of collection of the same; and the purposes for which
they may be used.
(h) The amount which each member or stockholder shall be required to pay
annually or from time to time, if at all, to carry on the business of the
association; the charge, if any, to be paid by each member or stockholder
for services rendered by the association to him and the time of payment and
the manner of collection; and the marketing contract between the
association and its members or stockholders which every member or
stockholder may be required to sign.
(i) The number and qualification of members or stockholders of the
association and the conditions precedent to membership or ownership of
common stock; the method, time and manner of permitting members to withdraw
or the holders of common stock to transfer their stock; the manner of
assignment and transfer of the interest of members and of the shares of
common stock; the conditions upon which and time when membership of any
member shall cease; the automatic suspension of the rights of a member when
he ceases to be eligible to membership in the association; and the mode,
manner and effect of the expulsion of a member; the manner of determining
the value of a member's interest and provision for its purchase by the
association upon the death or withdrawal of a member or common stockholder
or upon the expulsion of a member or forfeiture of his membership, or, at
the option of the association, the purchase at a price fixed by conclusive
appraisal by the board of directors. In case of the withdrawal or expulsion
of a member, unless otherwise limited or restricted in the articles of
incorporation or any amendment thereto, the board of directors shall
equitably and conclusively appraise his membership and/or common stock
interests in the association and shall fix the amount thereof in money,
which shall be paid to him within one year after such expulsion or
(Source: Laws 1931, p. 390.)