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NY A11498
Bill
Status
6/17/2010
Primary Sponsor
James Brennan
Click for details
AI Summary
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Authorizes the formation of "benefit corporations" in New York as a new type of business corporation that must pursue a "general public benefit" and may pursue additional specific public benefits as defined in their certificate of incorporation.
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Allows existing business corporations to elect benefit corporation status or terminate such status, with both actions requiring a three-quarters supermajority vote (minimum status vote) from shareholders of each class or series.
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Requires benefit corporation directors to consider effects of their actions on the corporation's public benefit purpose, shareholders, employees, suppliers, customers, communities, and environment when discharging their duties.
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Mandates annual benefit reports delivered to shareholders within 120 days of fiscal year-end, including narrative descriptions of public benefits pursued, third-party performance assessments, director compensation, and major shareholders' identities.
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Requires benefit corporations to post their most recent benefit report on their website (with compensation and proprietary information exempt) and file copies with the Department; corporations forfeiting this status by not filing for two years may have status automatically reinstated upon filing.
Legislative Description
Authorizes the incorporation of benefit corporations and provides for the public benefit to be created by benefit corporations, for the election and termination of the status of a benefit corporation, for the standards of conduct for directors and officers of a benefit corporation, and for the preparation and distribution of an annual benefit report by a benefit corporation.
Last Action
reported referred to rules
6/30/2010