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Ark. Code Ann. § 4-36-303

Standard of conduct for officers

Known as the Arkansas Benefit Corporation Act

The act spans §§ 4–4 (13 sections).

Acts 2013, No. 1388, § 1.

(1) An officer of a benefit corporation shall consider the interests and factors described in § 4-36-301 if: The officer has discretion to act with respect to a matter; and

(2) It reasonably appears to the officer that the matter may have a material effect on the creation by the benefit corporation of a general public benefit or a specific public benefit identified in the articles of incorporation of the benefit corporation.

(3) The consideration of interests and factors described in subsection (a) of this section shall not constitute a violation of § 4-27-841.

(4) An officer is not personally liable for monetary damages for: An action or omission as an officer if the officer performed the duties of the position in compliance with § 4-27-841 and this section; or

(5) Failure of the benefit corporation to pursue a general public benefit or a specific public benefit.

(6) An officer does not have a duty to a person that is a beneficiary of a general public benefit purpose or a specific public benefit purpose of a benefit corporation arising from the status of the person as a beneficiary.

Current official text: Arkansas General Assembly. Digitized from the UniCourt Code Improvement Commission public-domain capture. Reproduced from public-domain Arkansas statutes; confirm against the official source for the current text. Not legal advice.