SB14 Summary

• Authorizes the formation of benefit corporations in Alabama, a new business entity type designed to create general and specific public benefits for society and the environment alongside profit generation.

• Requires benefit corporations to have a designated independent "benefit director" responsible for monitoring compliance with public benefit purposes and preparing annual statements about the corporation's performance.

• Directors and officers of benefit corporations must consider effects of actions on shareholders, employees, customers, communities, and the environment when making decisions, with liability protections provided for good faith compliance.

• Mandates annual benefit reports to shareholders and the Secretary of State containing descriptions of public benefit pursued, social and environmental performance assessments using third-party standards, and financial disclosures, with a $70 filing fee.

• Establishes enforcement mechanisms allowing shareholders, directors, and specified persons to bring "benefit enforcement proceedings" against directors or officers for failure to pursue public benefit purposes, with private disputes limited to this special proceeding.