§ 35-1-1412 — Enforcement

35-1-1412 . Enforcement. (1) A person may bring an action or assert a claim against a benefit corporation or its directors or officers only through a benefit enforcement proceeding under this section.
(2) A benefit enforcement proceeding may be commenced or maintained:
(a) directly by the benefit corporation; or
(b) derivatively by:
(i) a shareholder;
(ii) a director;
(iii) a person or group of persons that owns beneficially or of record 5% or more of the equity interests in an entity of which the benefit corporation is a subsidiary; or
(iv) any other person who may be specified in the articles of incorporation of the benefit corporation.
(3) A benefit corporation is not liable for monetary damages for any failure of the benefit corporation to create general public benefit or a specific public benefit.
(4) If the court in a benefit enforcement proceeding finds that a failure to comply with this part was without justification, the court may award an amount sufficient to reimburse the plaintiff for the reasonable expenses incurred by the plaintiff, including attorney fees and expenses, in connection with the benefit enforcement proceeding.

Legislative History

En. Sec. 12, Ch. 306, L. 2015.