(a) A society shall operate for the benefit of members and their beneficiaries by:
         (1) Providing benefits as specified in Section 297.1
    
of this amendatory Act; and
        (2) Operating for one or more social, intellectual,
    
educational, charitable, benevolent, moral, fraternal, patriotic or religious purposes for the benefit of its members, which may also be extended to others. Such purposes may be carried out directly by the society or indirectly through subsidiary corporations or affiliated organizations.
    (b) Every society shall have the power to adopt laws and rules for the government of the society, the admission of its members and the management of its affairs. It shall have the power to change, alter, add to or amend such laws and rules and shall have such other powers as are necessary and incidental to carrying into effect the objects and purposes of the society.
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     (c) A domestic society that provides any of the benefits specified in Section 297.1 of this Code must be governed by a board of directors and managed by qualified officers subject to the following requirements:
         (1) The laws of a society must provide that:
             (i) the board of directors shall have the powers
        
and perform the duties ordinarily possessed and exercised by a board of directors under this Code, including, but not limited to, the authority and responsibility for the hiring and the discharge of a president, chief executive officer, or an equivalent position, except that a society that elects its president, chief executive officer, or equivalent position pursuant to its by-laws, as of the effective date of this amendatory Act of the 98th General Assembly, may continue to do so if it elects a president, chief executive officer, or equivalent position that meets qualifications set forth in a rule adopted by the Director; and
            (ii) the board of directors may remove a director
        
for cause and replace the director with another qualified director.
        After the effective date of this amendatory Act of
    
the 98th General Assembly, a domestic society shall amend its laws, as necessary, to comply with this paragraph (1) as soon as reasonably practicable, but in no event later than January 1, 2019.
        (2) A person convicted of a felony may not be a
    
director or an officer of a domestic society.
        (3) A society shall provide information regarding
    
qualifications of board candidates to voting members prior to the time of election.
        (4) Each newly elected director of a domestic society
    
shall participate in a board training or orientation program within 6 months after their election to the board that includes information regarding board duties and responsibilities.
        (5) At least annually, the board of directors shall
    
conduct a self-assessment.
        (6) Each domestic society shall establish an audit
    
committee. The composition and responsibilities of the audit committee shall comply with the Illinois Administrative Code provisions relating to annual financial reporting.
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