HB1510 Summary

• Establishes Chapter 36 of Arkansas Code Title 4, creating the Arkansas Benefit Corporation Act to authorize a new business entity type focused on generating public benefit alongside profit.

• Benefit corporations must pursue a "general public benefit" (material positive impact on society and environment) and may identify specific public benefits such as environmental preservation, improving human health, or economic opportunity for underserved communities.

• Requires benefit corporations to have a benefit director (independent individual) and optional benefit officer, with directors and officers required to consider effects on shareholders, employees, customers, communities, environment, and the corporation's public benefit purposes.

• Mandates annual benefit reports assessed against third-party standards, including narrative descriptions of public benefit pursuit, social and environmental performance assessments, and statements from the benefit director, with reports filed with Secretary of State for a $70 filing fee.

• Limits legal liability of benefit corporations and their directors/officers for failure to pursue stated public benefits; restricts benefit enforcement proceedings to actions by the corporation itself, shareholders, directors, or 5% equity owners.