[§420D-5] Corporate purposes.

446 words·~2 min read·/hi/420d-5

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)Every sustainable business corporation shall have among its purposes the creation of a general public benefit.

(b)In addition to the general public benefit purpose required by subsection (a), the articles of a sustainable business corporation may identify one or more specific public benefits for which the sustainable business corporation was created. The identification of a specific public benefit under this subsection shall not limit the obligation of a sustainable business corporation to create a general public benefit. Allowable specific public benefits for sustainable business corporations subject to this chapter include:

(1)Providing low-income or underserved individuals or communities with beneficial products or services;

(2)Promoting economic opportunity for individuals or communities beyond the creation of jobs in the normal course of business;

(3)Preserving the environment;

(4)Improving human health;

(5)Promoting the arts, sciences, or advancement of knowledge;

(6)Increasing the flow of capital to entities with a public benefit purpose;

(7)Accomplishing any other particular benefit for society or the environment; and

(8)Using the right to exclude, conferred by any and all patents in which the sustainable business corporation has an interest in this right through assignment, license, lien, security agreement, or obligation for the following purposes:

(A)Creating and retaining good jobs within the State as well as throughout the United States;

(B)Upholding fair labor standards nationally and internationally; provided that for purposes of this paragraph, "fair labor standards" shall be construed to prohibit child labor, forced or compulsory labor, discrimination in employment, restrictions on freedom of association, and denial of the right to collective bargaining; and

(C)Enhancing environmental protection nationally and internationally; provided that if the public benefit under this paragraph relating to the use of patents is specified, section 420D-4 shall not apply to the corporation and the sustainable business corporation status shall be permanent, and this specific public benefit shall not be deleted from the articles of the corporation pursuant to subsection (d), unless the annual statement of the benefit director concludes that the sustainable business corporation has failed to pursue this specific public benefit, then the corporation shall have its status as a sustainable business corporation terminated.

(c)The creation of general and specific public benefits as provided in subsections

(a)and

(b)shall be in the best interests of the sustainable business corporation.

(d)A sustainable business corporation may amend its articles to add, amend, or delete the identification of a specific public benefit for which the sustainable business corporation was created. An amendment pursuant to this subsection shall not be effective unless it is adopted by at least the minimum status vote. [L 2011, c 209, pt of §1]