HB 5872 Summary

• Requires benefit corporations to prepare an annual benefit report including narrative descriptions of how the corporation pursued its general and specific public benefit purposes and the extent of benefit created.

• Annual benefit report must include descriptions of circumstances hindering benefit creation, the process for selecting third-party standards, an assessment of overall social and environmental performance, director compensation, and any connections between the third-party standard organization and the benefit corporation.

• Benefit corporations must distribute the annual report to shareholders within 120 days of fiscal year end or with other annual reports, with electronic distribution permitted upon request for written copies.

• Corporations must post their most recent annual benefit report on their website if one exists, but may omit director compensation and proprietary financial information from the publicly posted version.

• Act takes effect 90 days after enactment and is contingent upon passage of HB 5867, HB 5868, and HB 5869.