(805 ILCS 5/7.80)
(from Ch. 32, par. 7.80)
Provisions relating to actions by shareholders.
action shall be brought in this State by a shareholder in the right of a
domestic or foreign corporation unless the plaintiff was a shareholder of
record at the time of the transaction of which
he or she complains, or his or her shares or voting trust certificates thereafter
devolved upon him or her by operation of law from a person who was a holder
at such time; provided, however, that a shareholder who does not meet such
requirement may nevertheless be allowed in the discretion of the court to
bring such action on a preliminary showing to and determination by the court,
upon motion and after a hearing at which the court may consider such evidence
by affidavit or testimony as it deems material, that plaintiff acquired
the shares before there was disclosure to the public or to the plaintiff
of the wrongdoing of which plaintiff complains.
(b) A complaint in a proceeding brought in the right of a corporation
must allege with particularity the demand made, if any,
to obtain action by the directors and either why the complainant could not
obtain the action or why he or she did not make the demand. If a demand
for action was made and the corporation's investigation of the demand is
in progress when the proceeding is filed, the court may stay the suit for
thirty days or until the investigation is completed, whichever is less.
(c) A proceeding commenced under this Section may not be discontinued
or settled without the court's approval. If the court determines that a
proposed discontinuance or settlement will substantially affect the interest
of the corporation's shareholders or a class of shareholders, the court
may direct that notice be given the shareholders affected.
(Source: P.A. 83-1025.)