NRS 78B.080 “Third-party standard” defined.

318 words·~1 min read·/nv/chapter-78b-benefit-corporations/78b-080

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

NRS 78B.080 “Third-party standard” defined. “Third-party standard” means a standard for defining, reporting and assessing overall corporate social and environmental performance:

1. That provides for a comprehensive assessment of the impact of the benefit corporation and its operations upon the considerations listed in paragraphs

(b)to (e), inclusive, of subsection 1 of NRS 78B.150 ;

2. That is developed by an entity that:

(a)Has no material financial relationship with the benefit corporation or a subsidiary of the benefit corporation;

(b)Is governed by a governing body of which not more than one-third of the members are representatives of:

(1)Associations of businesses operating in a specific industry whose members’ performances are measured by the standard;

(2)Businesses from a specific industry or an association of businesses in that industry; or

(3)Businesses whose performance is assessed against that standard;

(c)Is not materially financed by an association or business described in paragraph (b);

(d)Accesses necessary and appropriate expertise to assess overall corporate social and environmental performance; and

(e)Uses a balanced, multistakeholder approach to develop the standard, including, without limitation, a public comment period of at least 30 days; and

3. About which the following information is available to the public:

(a)The criteria considered when measuring the overall social and environmental performance of a business;

(b)The relative weightings assigned to the criteria described in paragraph (a);

(c)The identity of the directors, officers, material owners and the governing body of the entity that developed, and controls revisions to, the standard;

(d)The process for revising the standard and changing the membership of the governing body that developed, and controls revisions to, the standard; and

(e)An accounting of the sources of financial support for the entity that developed, and controls revisions to, the standard which provides sufficient detail to disclose any relationships that could reasonably be considered to present a potential conflict of interest.