House Bill 5712 Summary

• Adds "benefit corporation" as a defined term in the Business Corporation Act, establishing a new class of domestic corporation that meets requirements under a new chapter 9A.

• Permits benefit corporations to use corporate names containing "benefit corporation," "benefit company," or "B.C." instead of the standard corporate designation requirements.

• Prohibits benefit corporations from converting into other business organizations under section 745, and prohibits other business organizations from converting into benefit corporations under section 746.

• Adds dissenter rights for shareholders of benefit corporations under section 762 when articles of incorporation are amended or merger/share exchange plans are consummated involving benefit corporations.

• Requires the bill to take effect 90 days after enactment, contingent upon simultaneous enactment of HB 5710, HB 5711, and HB 5713.