IL SB1872

Adds Article 1A to the Business Corporation Act of 1983 establishing procedures for ratification and validation of defective corporate actions.

Allows corporations to cure defects in corporate actions (including improper authorization or documentation) through board ratification, with shareholder approval required in certain circumstances.

Establishes that ratified defective corporate actions become valid effective as of the original action date, and putative shares issued as a result become valid shares.

Requires notice to shareholders of valid and putative shares regarding ratification, with a 120-day statute of limitations for claims that ratified actions should not be effective.

Permits circuit court review of ratification validity and authorizes courts to determine validity of corporate actions, putative shares, and modify ratification procedures as appropriate.