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Article 38: Laws Against Criminally Operated Businesses

Article 38: Laws Against Criminally Operated Businesses

Article 38 describes the powers vested to the Illinois state government regarding the forfeiture of criminally-operated businesses. According to Illinois criminal law, the States Attorney is authorized to initiate civil proceedings to forfeit the charter of any corporation whose employees engage in a bribery or coercion scheme or other illegal conduct. In order for the States Attorney to do so, the public interest must require the dissolution of the company in order to guarantee the prevention of future illegal conduct.

In addition, if a member of any partnership, joint venture, or sole proprietorship commits an illegal act like the ones mentioned above, the court can grant an injunction on the business.

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The text below comes from Article 38 of the Illinois Criminal Code of 1961. This law may have changed -- please read the important legal disclaimer at the bottom of this page.

Illinois Criminal Code of 1961 - Article 38

Sec. 38-1. Forfeiture of charter and revocation of certificate.
    (720 ILCS 5/38-1)

The State's Attorney is authorized to institute civil proceedings in the Circuit Court to forfeit the charter of a corporation organized under the laws of this State or to revoke the certificate authorizing a foreign corporation to conduct business in this State. The Court may order the charter forfeited or the certificate revoked upon finding (a) that a director, officer, employee, agent or stockholder acting in behalf of the corporation has, in conducting the corporation's affairs, purposely engaged in a persistent course of intimidation, coercion, bribery or other such illegal conduct with the intent to compel other persons, firms, or corporations to deal with such corporation, and (b) that for the prevention of future illegal conduct of the same character, the public interest requires the charter of the corporation to be forfeited and the corporation to be dissolved or the certificate to be revoked. (Source: Laws 1965, p. 1222.)

Sec. 38-2. Enjoining operation of a business.
    (720 ILCS 5/38-2)

The State's Attorney is authorized to institute civil proceedings in the Circuit Court to enjoin the operation of any business other than a corporation, including a partnership, joint venture or sole proprietorship. The Court may grant the injunction upon finding that (a) any person in control of any such business, who may be a partner in a partnership, a participant in a joint venture, the owner of a sole proprietorship, an employee or agent of any such business, or a person who, in fact, exercises control over the operations of any such business, has, in conducting its business affairs, purposely engaged in a persistent course of intimidation, coercion, bribery or other such illegal conduct with the intent to compel other persons, firms, or corporations to deal with such business, and (b) that for the prevention of future illegal conduct of the same character, the public interest requires the operation of the business to be enjoined. (Source: Laws 1965, p. 1222.)

Sec. 38-3. Institution and conduct of proceedings.) (a) The proceedings authorized by Section 38-1 may be instituted against a corporation in any county in which it is doing business and the proceedings shall be conducted in accordance with the Civil Practice Law and all existing and future amendments of that Law and the Supreme Court Rules now or hereafter adopted in relation to that Law.
    (720 ILCS 5/38-3)

Such proceedings shall be deemed additional to any other proceeding authorized by law for the purpose of forfeiting the charter of a corporation or revoking the certificate of a foreign corporation.

(b) The proceedings authorized by Section 38-2 may be instituted against a business other than a corporation in any county in which it is doing business and the proceedings shall be conducted in accordance with the Civil Practice Law and all existing and future amendments of that Law and the Supreme Court Rules now or hereafter adopted in relation to that Law.

(c) Whenever proceedings are instituted against a corporation or business pursuant to Section 38-1 or 38-2, the State's Attorney shall give written notice of the institution of such proceedings to the corporation or business against which the proceedings are brought. (Source: P.A. 82-783.)

   Return to Illinois Criminal Code of 1961 Table of Contents

DISCLAIMER: These excerpts from the law are provided for reference purposes only. Visitors to our Chicago criminal defense lawyer website should be aware that Illinois criminal laws have been amended many times and that Illinois crime laws posted on this site may not be current. In addition, Illinois criminal case law defines precedents for legal determinations that are not defined in the original laws.

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