Arkansas § 4-36-305 Right of action

Arkansas Statutes

§ 4-36-305 — Right of action

Arkansas § 4-36-305

Title4

This text of Arkansas § 4-36-305 (Right of action) is published on Counsel Stack Legal Research, covering Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ark. Code Ann. § 4-36-305 (2026).

Text

(a)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:

(1)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.

(b)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.

(c)A benefit enforcement proceeding may begin and be maintained only:

(1)Directly by the benefit corporation; or (2) Derivatively by:

(A)A shareholder;

(B)A director;

(C)A person or group of persons that owns beneficially or of r

Free access — add to your briefcase to read the full text and ask questions with AI

(a) 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: (1) 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. (b) 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. (c) A benefit enforcement proceeding may begin and be maintained only: (1) Directly by the benefit corporation; or (2) Derivatively by: (A) A shareholder; (B) A director; (C) 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 (D) Other persons as named in the articles of incorporation or bylaws of the benefit corporation.