SB11-005 Summary

• Enacts the "Colorado Benefit Corporation Act" establishing a new corporate form for companies that elect to promote general public benefit alongside traditional business purposes.

• Requires benefit corporations to have a "benefit director" who must be independent and prepare annual opinions on whether the corporation is meeting its public benefit purposes.

• Directors and officers must consider effects of decisions on shareholders, employees, suppliers, customers, communities, environment, and the corporation's ability to accomplish its public benefit purposes without prioritizing any single stakeholder unless specified in articles of incorporation.

• Mandates annual benefit reports to shareholders describing how the corporation pursued general and specific public benefits, assessed using third-party standards, and filed with the secretary of state.

• Limits enforcement of benefit corporation duties and purposes to benefit enforcement proceedings brought directly by the corporation or derivatively by shareholders, directors, or 5% equity holders.