Sec. 4.20. Right of action; benefit enforcement proceeding.

177 words·~1 min read·/il/chapter-805/act-40/4-20

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

(a)No person may bring an action or assert a claim against a benefit corporation or its directors or officers with respect to failure to pursue or create general public benefit or a specific public benefit set forth in its articles of incorporation or violation of a duty or standard of conduct under this Act except in a benefit enforcement proceeding.

(b)A benefit enforcement proceeding may be commenced or maintained only:

(1)directly by the benefit corporation; or

(2)derivatively by:

(A)a shareholder;

(B)a director;

(C)a person or group of persons that owns beneficially or of record 5% or more of

the equity interests in an entity of which the benefit corporation is a subsidiary; or

(D)other persons as specified in the articles of incorporation or bylaws of the

benefit corporation.

(c)A benefit corporation shall not be liable for monetary damages under this Act for any failure of the benefit corporation to pursue or create general public benefit or a specific public benefit.