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MS HB207
Bill
Status
Failed
1/31/2023
Primary Sponsor
Orlando Paden
Click for details
AI Summary
- Creates the "Mississippi Benefit Corporation Act" allowing businesses to incorporate as benefit corporations that must pursue general public benefit (positive impact on society and environment) in addition to traditional profit-making purposes
- Requires benefit corporations to be incorporated under the Mississippi Business Corporation Act with articles of incorporation stating benefit corporation status, and existing corporations may convert with a two-thirds shareholder vote
- Establishes standards of conduct requiring directors and officers to consider effects of decisions on shareholders, employees, customers, community, environment, and the corporation's ability to accomplish its public benefit purpose
- Mandates annual benefit reports describing how the corporation pursued public benefit, assessed against a third-party standard, which must be sent to shareholders within 120 days of fiscal year end and filed with the Secretary of State for a $25 fee
- Limits liability by prohibiting monetary damages against benefit corporations or their directors/officers for failure to pursue public benefit, with enforcement actions restricted to direct corporate action or derivative suits by shareholders owning at least 2% of shares
Legislative Description
Mississippi Benefit Corporation Act; create.
Last Action
Died In Committee
1/31/2023
Committee Referrals
Judiciary A1/4/2023
Full Bill Text
No bill text available