Benefit corporations; definition, requirements. (HB2358)

Introduced By

Sen. 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. Read the Bill »

Outcome

Bill Has Passed

History

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

Video

This bill was discussed on the floor of the General Assembly. Below is all of the video that we have of that discussion, 1 clip in all, totaling 2 minutes.