HB 6310 Summary

• Adds Section 961 to Chapter 9A of the Business Corporation Act to establish annual benefit report requirements for benefit corporations.

• Benefit corporations must include in their annual report: narrative descriptions of how they pursued general and specific public benefits, circumstances hindering benefit creation, third-party standard selection rationale, and overall social/environmental performance assessment.

• Benefit corporations must disclose director compensation and any financial relationships between the third-party standard organization and the corporation that could affect the credibility of the assessment.

• Corporations must distribute the annual benefit report to shareholders within 120 days of fiscal year-end (or with other annual reports), post it on their website if one exists, and file it with the state administrator; compensation details and proprietary information may be omitted from public disclosures.

• Effective 90 days after enactment, contingent upon passage of HB 6309, HB 6311, and HB 6312.