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.