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Ark. Code Ann. § 4-36-305

Right of action

Known as the Arkansas Benefit Corporation Act

The act spans §§ 4–4 (13 sections).

Acts 2013, No. 1388, § 1.

(1) Except in a benefit enforcement proceeding, a person may not bring an action or assert a claim against a benefit corporation or its directors or officers with respect to: Failure to pursue or create a general public benefit or a specific public benefit stated in its articles of incorporation; or

(2) Violation of a duty or standard of conduct under this chapter.

(3) A benefit corporation shall not be liable for monetary damages under this chapter for the failure of the benefit corporation to pursue a general public benefit or a specific public benefit.

(4) A benefit enforcement proceeding may begin and be maintained only: Directly by the benefit corporation; or

(5) Derivatively by: A shareholder;

(6) A director;

(7) A person or group of persons that owns beneficially or of record five percent (5%) or more of the equity interest in an entity of which the benefit corporation is a subsidiary at the time of the action or inaction complained of; or

(8) Other persons as named in the articles of incorporation or bylaws of the benefit corporation.

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.