S.B. No. 205 Summary

• Establishes "benefit corporations" in Ohio law, allowing corporations to include one or more beneficial purposes in their articles of incorporation alongside profit-making goals.

• Defines "beneficial purpose" as seeking positive effects or reducing negative effects on persons, entities, communities, or interests beyond shareholders, including artistic, charitable, environmental, educational, and other purposes.

• Permits corporations to use "benefit" or "b-" prefix in their corporate names if they are benefit corporations.

• Directors of benefit corporations may consider beneficial purposes when determining corporate interests and are not liable to beneficiaries based solely on their status as beneficiaries.

• Benefit corporations are subject only to equitable remedies (injunction and specific performance) for failing to pursue beneficial purposes, not damages; derivative actions can be brought by directors or shareholders holding specified share thresholds.