Professional Association Act
Illinois · Business Organizations · §§ 805-305-0-01 to 805-305-9 · 12 sections
Overview
The Professional Association Act allows members of licensed professions to organize as a professional association, a business form that permits professionals to practice together under a governing instrument while limiting the personal liability of its members. It provides for formation through articles of association, management by a board of governors, adoption of bylaws, and a fixed or perpetual term of existence, and it regulates the association's name, the employment and compensation of personnel, and the distribution of earnings among the associates. It also governs the ownership interests of associates — their voting rights, transfer, and redemption — and addresses what happens when an associate becomes professionally disqualified, along with the procedures for dissolving the association.
Editorial summary generated from the text of this act. It is not part of the statute — read the sections below for the operative language.
Sections covered
- 805 ILCS 305/0.01Short title
- 805 ILCS 305/1Business Organizations › 805 ILCS 305 — Professional Association Act
- 805 ILCS 305/10Regulation of practice of law
- 805 ILCS 305/2As used in this Act, the term "professional service" means any type of personal service to the public which requires as a condition precedent to the rendering of such service the obtaining of a license, and which service by law cannot be performed by a corporation
- 805 ILCS 305/2.1"Related professional services" means more than one professional service which requires as a condition precedent to the rendering thereof the obtaining of a license from a State agency and includes only professional services within the fields of medicine, dentistry and nursing
- 805 ILCS 305/3Business Organizations › 805 ILCS 305 — Professional Association Act
- 805 ILCS 305/4A professional association may in its own name invest its funds in real estate, mortgages, stocks, bonds, or any other type of investment, and may own real or personal property necessary or appropriate for rendering its professional service
- 805 ILCS 305/5Each individual licensed in this State to perform professional services who is employed by a professional association shall remain subject to reprimand or discipline for his conduct under the provisions of the licensing statute pursuant to which he is licensed
- 805 ILCS 305/6This Act does not alter any law applicable to the relationship between a person furnishing professional service and a person receiving such professional service including liability arising out of such professional service
- 805 ILCS 305/7Business Organizations › 805 ILCS 305 — Professional Association Act
- 805 ILCS 305/8Business Organizations › 805 ILCS 305 — Professional Association Act
- 805 ILCS 305/9Shares or units of ownership in a professional association shall be transferable to persons licensed to perform the same type of professional service as that for which the professional association was formed
Enacted in other states
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