HB05251 Summary

• Establishes the Connecticut Benefit Limited Liability Company Act, creating a new business structure that requires LLCs to pursue a general public benefit and may identify specific public benefits in their certificate of organization.

• Requires benefit LLCs to include "benefit limited liability company," "BLLC," or "B.L.L.C." in their name and mandates annual benefit reports assessed against third-party standards, distributed to members within 120 days of fiscal year end.

• Allows members and managers to consider effects on employees, customers, communities, environment, and the company's benefit purposes when making decisions, with protections against personal liability for good-faith compliance.

• Permits appointment of a benefit officer to oversee compliance with public benefit purposes and provide annual opinions on the company's performance; requires 24 months before adopting legacy preservation provisions that restrict future asset sales and mergers.

• Limits benefit enforcement proceedings to actions brought by the company itself or derivatively by members owning 5% or more of interests; all provisions effective October 1, 2018.