Illinois LLC Act Amended as to Member’s Right to Inspect Books and Records

Illinois LLC Act Amended as to Member’s Right to Inspect Books and Records

In 2019 Illinois amended its LLC Act to provide that a (a) a member denied access to requested books and records may bring an action to enforce that right, (b) permits an award of attorney fees and costs incurred in favor of the member against the company where the LLC did not comply with the statute and (c) allows a court to impose restrictions on the access to and use of the information “based on the reasonable needs of the company and the member in question.”  See 805 ILCS 180/10-15 as amended by 2019 Illinois Senate Bill No. 1495 (adding new subsection (j)), which provides:

If the company fails to provide any information  required to be provided by this Section, the person entitled to  the information may file an action to compel the company to  provide the information and to obtain such other legal or  equitable relief as may be proper. If the court finds that the  company failed to comply with the requirements of this Section,  the court may award the plaintiff its reasonable costs and  attorney's fees incurred in bringing and prosecuting the  action. The court may, in connection with any information  described in subsection (h), impose such restrictions and  conditions on access to and use of such information as it deems  appropriate based on the reasonable needs of the company and  the member in question.