§ 1708 — Annual benefit report

§ 1708. Annual benefit report.\n (a) A benefit corporation must deliver to each shareholder an annual\nbenefit report including:\n (1) a narrative description of:\n (A) the process and rationale for selecting the third party standard\nused to prepare the benefit report;\n (B) the ways in which the benefit corporation pursued general public\nbenefit during the year and the extent to which general public benefit\nwas created;\n (C) the ways in which the benefit corporation pursued any specific\npublic benefit that the certificate of incorporation states it is the\npurpose of the benefit corporation to create and the extent to which\nthat specific public benefit was created; and\n (D) any circumstances that have hindered the creation by the benefit\ncorporation of general or specific public benefit;\n (2) an assessment of the performance of the benefit corporation,\nrelative to its general public benefit purpose assessed against a\nthird-party standard applied consistently with any application of that\nstandard in prior benefit reports or accompanied by an explanation of\nthe reasons for any inconsistent application and, if applicable,\nassessment of the performance of the benefit corporation, relative to\nits specific public benefit purpose or purposes;\n (3) the compensation paid by the benefit corporation during the year\nto each director in that capacity; and\n (4) the name of each person that owns beneficially or of record five\npercent or more of the outstanding shares of the benefit corporation.\n (b) The benefit report must be sent annually to each shareholder\nwithin one hundred twenty days following the end of the fiscal year of\nthe benefit corporation. Delivery of a benefit report to shareholders is\nin addition to any other requirement to deliver an annual report to\nshareholders.\n (c) A benefit corporation must post its most recent benefit report on\nthe public portion of its website, if any, except that the compensation\npaid to directors and any financial or proprietary information included\nin the benefit report may be omitted from the benefit report as posted.\n (d) Concurrently with the delivery of the benefit report to\nshareholders pursuant to paragraph (b) of this section, the benefit\ncorporation must deliver a copy of the benefit report to the department\nfor filing, except that the compensation paid to directors and any\nfinancial or proprietary information included in the benefit report may\nbe omitted from the benefit report as filed under this section.\n (e) The annual benefit report shall be in addition to all other\nreporting requirements under this chapter.\n