Right of action

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§1825. Right of action

1.  General rule.  Except in a benefit enforcement proceeding, a person may not bring an action or assert a claim against a benefit corporation or its directors or officers with respect to:  

A. Failure to pursue or create general public benefit or a specific public benefit set forth in the articles of incorporation; or   [PL 2019, c. 328, §1 (NEW).]

B. Violation of an obligation, duty or standard of conduct under this chapter.   [PL 2019, c. 328, §1 (NEW).]

[PL 2019, c. 328, §1 (NEW).]

2.  Limitation on liability of corporation.  A benefit corporation is not liable for monetary damages under this chapter for any failure of the benefit corporation to pursue or create general public benefit or a specific public benefit.  

[PL 2019, c. 328, §1 (NEW).]

3.  Standing.  A benefit enforcement proceeding may be commenced or maintained only:  

A. Directly by the benefit corporation; or   [PL 2019, c. 328, §1 (NEW).]

B. Derivatively in accordance with chapter 7, subchapter 4 by:  

(1) A person or group of persons that owned beneficially or of record at least 2% of the total number of shares of a class or series outstanding at the time of the act or omission complained of;  

(2) A director;  

(3) A person or group of persons that owned beneficially or of record 5% or more of the outstanding equity interests in an entity of which the benefit corporation is a subsidiary at the time of the act or omission complained of; or  

(4) Other persons as specified in the articles of incorporation or bylaws of the benefit corporation.   [PL 2019, c. 328, §1 (NEW).]

[PL 2019, c. 328, §1 (NEW).]

4.  Beneficial ownership.  For purposes of this section, a person is the beneficial owner of shares or equity interests if the shares or equity interests are held in a voting trust or by a nominee on behalf of the beneficial owner.  

[PL 2019, c. 328, §1 (NEW).]

SECTION HISTORY

PL 2019, c. 328, §1 (NEW).


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