§ 48-4-401 — Annual benefit report.

Utah § 48-4-401

• Jurisdiction: Utah
• Title 48: Unincorporated Business Entity Act
• Ch. 48-4: Benefit Limited Liability Company Act
• Part 48-4-4: Transparency

Text

(1) A benefit company shall prepare an annual benefit report that includes:

(1)(a) a narrative description of:
(1)(a)(i) the ways in which the benefit company pursued the benefit company's general public benefit purpose during the year and the extent to which general public benefit was created;
(1)(a)(ii) the ways in which the benefit company pursued any specific public benefit that the benefit company's certificate of organization states is the purpose of the benefit company to create and the extent to which the specific public benefit was created;
(1)(a)(iii) any circumstances that have hindered the benefit company's creation of general public benefit or any specific public benefit; and
(1)(a)(iv) the process and rationale for selecting or changing the third-party standard used to prepare the benefit report;
(1)(b) an assessment of the overall social and environmental performance of the benefit company against a third-party standard:
(1)(b)(i) applied consistently with any application of the standard in prior benefit reports; or
(1)(b)(ii) accompanied by an explanation of the reasons for any inconsistent application; and
(1)(c) any connection between the organization that established the third-party standard, or the organization's directors or officers, or a holder of 5% or more of the governance interests in the organization, and the benefit company or the benefit company's members, managers, or officers or any holder of 5% or more of the outstanding interests in the benefit company, including any financial or governance relationship that might materially affect the credibility of the use of the third-party standard.
(2) The assessment described in Subsection (1)(b) does not need to be audited or certified by a third party.

Legislative History

Enacted by Chapter 201, 2018 General Session