Summary of SB 00023 - Connecticut Benefit Corporation Act

• Establishes a new legal classification for "benefit corporations" that pursue both profit and general public benefit purposes, with optional identification of specific public benefits such as serving underserved communities, environmental protection, or advancing knowledge.

• Requires benefit corporations to consider effects on shareholders, employees, suppliers, customers, communities, environment, and long-term interests when making decisions, with protection from liability for directors and officers who comply with these standards.

• Mandates annual benefit reports using third-party standards to assess social and environmental performance, with reports sent to shareholders within 120 days of fiscal year-end and posted publicly on company websites.

• Allows benefit corporations to adopt "legacy preservation provisions" after 24 months, requiring unanimous shareholder approval and restricting asset disposition to charitable organizations or other benefit corporations with legacy provisions.

• Provides appraisal rights to shareholders who object to conversions to benefit corporation status or mergers involving benefit corporations, and requires majority shareholder approval for benefit corporation status changes or terminations.