§ 490.1701 — Application of subchapter — definitions

Iowa § 490.1701

• Jurisdiction: Iowa
• Title XII: BUSINESS ENTITIES
• Ch. 490: BUSINESS CORPORATIONS

Text

1. If a corporation elects to become a benefit corporation under this subchapter in the
manner prescribed in this subchapter, it is subject in all respects to the provisions of this
chapter, except to the extent this subchapter imposes additional or different requirements,
in which case such requirements apply. The inclusion of a provision in this subchapter
does not imply that a contrary or different rule of law applies to a corporation that is not a
benefit corporation. This subchapter does not affect a statute or rule of law that applies to a
corporation that is not a benefit corporation.
2. As used in this subchapter:
a. “Benefit corporation” means a corporation that includes in its articles of incorporation
a statement that the corporation is subject to this subchapter.
b. “Public benefit” means a positive effect, or reduction of negative effects, on one or
more communities or categories of persons or entities, other than shareholders solely in their
capacity as shareholders, or on the environment, including effects of an artistic, charitable,
economic, educational, cultural, literary, medical, religious, social, ecological, or scientific
nature.
c. “Publicbenefitprovision”meansaprovisioninthearticlesofincorporationwhichstates
that the corporation shall pursue one or more identified public benefits.
d. “Responsible and sustainable manner” means a manner that does all of the following:
(1) Pursues through the business of the corporation the creation of a positive effect on
society and the environment, taken as a whole, that is material taking into consideration the
corporation’s size and the nature of its business.

(2) Considers, in addition to the interests of shareholders, the interests of stakeholders
known to be affected by the conduct of the business of the corporation.