Shareholder Duties and Protections

In general, shareholders of a benefit corporation have all of the same rights and protections as the shareholders of a traditional corporation.

In addition to the traditional rights, benefit corporation shareholders have three additional rights:

  • High vote into and out of form gives shareholders “mission insurance” over the long-term
  • Private right of action allows shareholders to enforce mission
  • Annual benefit report provides transparency regarding progress towards mission
  • In the absence of applicable case law, director decisions will be treated with similar deference to that afforded other business judgements under current law.

 

FAQs for Investors

 

FAQs for Directors