Sec. 4.10. Standard of conduct for officers.

186 words·~1 min read·/il/chapter-805/act-40/4-10

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

(a)Each officer of a benefit corporation shall consider the interests and factors described in subsection

(a)of Section 4.01 in the manner provided in that subsection if:

(1)the officer has discretion to act with respect to a matter; and

(2)it reasonably appears to the officer that the matter may have a material effect on

the creation by the benefit corporation of general public benefit or a specific public benefit identified in the articles of incorporation by the benefit corporation.

(b)Exoneration from personal liability. An officer is not personally liable for monetary damages for:

(1)action taken as an officer if the officer performed the duties of the position in

compliance with this Section; or

(2)failure of the benefit corporation to pursue or create general public benefit or

specific public benefit.

(c)Limitation on standing. An officer does not have a duty to a person that is a beneficiary of the general public benefit purpose or a specific public benefit purpose of a benefit corporation arising from the status of the person as a beneficiary.