§ 30-2007 — STANDARD OF CONDUCT FOR DIRECTORS

Idaho § 30-2007

• Jurisdiction: Idaho
• Title 30: CORPORATIONS
• Ch. 20: IDAHO BENEFIT CORPORATION ACT

Text

(1) In discharging the duties of their respective positions and in considering the best interests of the benefit corporation, the board of directors, committees of the board and individual directors of a benefit corporation shall consider the effects of any action or inaction on:
(a) The shareholders of the benefit corporation;
(b) The employees of the benefit corporation;
(c) The subsidiaries and suppliers of the benefit corporation;
(d) The interests of customers as beneficiaries of the general public benefit or specific public benefit purposes of the benefit corporation;
(e) Community and social factors, including those of each community in which offices or facilities of the benefit corporation, its subsidiaries, or its suppliers are located;
(f) The local and global environment;
(g) The short-term and long-term interests of the benefit corporation, including benefits that may accrue to the benefit corporation from its long-term plans and the possibility that these interests may be best served by the continued independence of the benefit corporation; and
(h) The ability of the benefit corporation to accomplish its general public benefit purpose and any specific public benefit purpose.
(2) In discharging the duties of their respective positions and in considering the best interests of the benefit corporation, the board of directors, committees of the board and individual directors of a benefit corporation may also consider any other pertinent factors or the interests of any group that they deem appropriate.
(3) The board of directors, committees of the board and individual directors of a benefit corporation need not give priority to a particular interest or factor referred to in subsection (1) or (2) of this section over any other interest or factor unless the benefit corporation has stated in its articles of incorporation its intention to give priority to certain interests or factors related to its accomplishment of its general public benefit or of a specific public benefit purpose identified in its articles of incorporation.
(4) The consideration of interests and factors in the manner required by this section does not constitute a violation of section 30-29-830, Idaho Code.
(5) Except as provided in the articles of incorporation, a director is not personally liable for monetary damages for:
(a) Any action or inaction in the course of performing the duties of a director under subsection (1) of this section if the director performed the duties of office in compliance with section 30-29-830, Idaho Code, and this section; or
(b) Failure of the benefit corporation to pursue or create general public benefit or specific public benefit.
(6) A director does not have a duty to a person that is a beneficiary of the general public benefit purpose or a specific public benefit purpose of a benefit corporation arising from the status of the person as a beneficiary.

Legislative History

[30-2007, added 2015, ch. 217, sec. 1, p. 676; am. 2016, ch. 47, sec. 10, p. 107.]