Benefit corporations; definition, requirements. (HB2358)

Introduced By

Del. Jennifer McClellan (D-Richmond)

Progress

√
 Introduced
√
 Passed Committee
√
 Passed House
√
 Passed Senate
√
 Signed by Governor
√
 Became Law

Description

Benefit corporations.  Authorizes a Virginia stock corporation to elect to be a benefit corporation by including in its articles of incorporation, or amending existing articles to include, a statement that the corporation is a benefit corporation. A benefit corporation is required to have the purpose of creating a general public benefit, which is defined as a material positive impact on society and the environment taken as a whole, as measured by a third-party standard, from the business and operations of a benefit corporation. In addition, a benefit corporation may have the purpose of creating one or more specific public benefits, which include providing low-income or underserved individuals or communities with beneficial products or services; promoting economic opportunity for individuals or communities beyond the creation of jobs in the normal course of business; preserving the environment; improving human health; promoting the arts, sciences, or advancement of knowledge; increasing the flow of capital to entities with a public benefit purpose; and conferring any other particular benefit on society or the environment. In determining what the director of such a corporation reasonably believes to be in the best interests of the corporation, he is required to consider the effects of any action on shareholders, and other persons and issues. A benefit corporation shall deliver to shareholders an annual report describing the ways in which the corporation generally pursued its general public benefit and related matters. A copy of the report shall be filed with the State Corporation Commission. A benefit corporation's status as such will be revoked if the report is not filed for two consecutive years. Amends § 13.1-782, of the Code of Virginia. View Full Text »

Outcome

Bill Has Passed

History

  • 01/12/2011 Committee
  • 01/12/2011 Prefiled and ordered printed; offered 01/12/11 11100529D
  • 01/12/2011 Referred to Committee on Commerce and Labor
  • 01/18/2011 Impact statement from SCC (HB2358)
  • 01/21/2011 Assigned C & L sub: #2
  • 01/27/2011 Reported from Commerce and Labor with substitute (20-Y 1-N) (see vote tally)
  • 01/27/2011 Committee substitute printed 11104181D-H1
  • 01/31/2011 Read first time
  • 02/01/2011 Read second time
  • 02/01/2011 Committee substitute agreed to 11104181D-H1
  • 02/01/2011 Engrossed by House - committee substitute HB2358H1
  • 02/02/2011 Read third time and passed House (97-Y 0-N)
  • 02/02/2011 VOTE: PASSAGE (97-Y 0-N) (see vote tally)
  • 02/03/2011 Constitutional reading dispensed
  • 02/03/2011 Referred to Committee on Commerce and Labor
  • 02/21/2011 Impact statement from SCC (HB2358H1)
  • 02/21/2011 Reported from Commerce and Labor (13-Y 0-N) (see vote tally)
  • 02/22/2011 Constitutional reading dispensed (40-Y 0-N) (see vote tally)
  • 02/23/2011 Read third time
  • 02/23/2011 Passed Senate (40-Y 0-N) (see vote tally)
  • 03/03/2011 Enrolled
  • 03/03/2011 Bill text as passed House and Senate (HB2358ER)
  • 03/03/2011 Signed by Speaker
  • 03/06/2011 Signed by President
  • 03/07/2011 Impact statement from SCC (HB2358ER)
  • 03/26/2011 G Approved by Governor-Chapter 698 (effective 7/1/11)
  • 03/26/2011 G Acts of Assembly Chapter text (CHAP0698)