provision

Provisions

Typical major provisions of a benefit corporation are:
Purpose
Shall create general public benefit
Shall have right to name specific public benefit purposes (e.g. 50% profits to charity)
The creation of public benefit is in the best interests of the benefit corporation
Accountability
Directors' duties are to make decisions in the best interests of the corporation
Directors and officers shall consider effect of decisions on shareholders and employees, suppliers, customers, community, environment (together the "stakeholders")
Transparency
Shall publish annual Benefit Report in accordance with recognized third party standards for defining, reporting, and assessing social and environmental performance
Benefit Report delivered to: 1) all shareholders; and 2) public website with exclusion of proprietary data
Right of Action
Only shareholders and directors have right of action
Right of Action can be for 1) violation of or failure to pursue general or specific public benefit; 2) violation of duty or standard of conduct
Change of Control/Purpose/Structure
Shall require a minimum status vote which is a 2/3 vote in most states, but slightly higher in a few states
Benefit corporations are treated like all other corporations for tax purposes.