Introduced
by
To authorize the formation of “benefit corporation” business entities whose purpose is not to maximize value for shareholders but to engage in various pro-social or pro-environmental activities as measured by a subjective “third-party standard," which would be devised according to procedures specified by a legislative package that includes House Bills 6309 to 6312. In the absence of a an objective profit motive directors and officers would have to run the company using business judgments that require they be informed but “not interested” in the subject of the business, and must “rationally believe that the business judgment is in the best interests of the benefit corporation.” However, a benefit corporation could not be sued for “any failure to pursue or create a general public benefit or a specific public benefit”.
Referred to the Committee on Government Operations
