Louisiana Revised Statutes 12:1825 – Right of action
Terms Used In Louisiana Revised Statutes 12:1825
- Benefit enforcement proceeding: means any claim or action for one or both of the following:
(a) Failure of a benefit corporation to pursue or create general public benefit or a specific public benefit set forth in its articles. See Louisiana Revised Statutes 12:1803
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- General public benefit: means a material positive impact on society and the environment, taken as a whole, assessed against a third-party standard, from the business and operations of a benefit corporation. See Louisiana Revised Statutes 12:1803
- person: includes a body of persons, whether incorporated or not. See Louisiana Revised Statutes 1:10
- Specific public benefit: means any of the following:
(a) Serving low-income or underserved individuals or communities. See Louisiana Revised Statutes 12:1803
A. The duties of directors and officers under this Chapter and the general public benefit purpose and any specific public benefit purpose of a benefit corporation may be enforced only in accordance with this Section in a benefit enforcement proceeding, and no person shall bring an action or assert a claim against a benefit corporation.
B. A benefit enforcement proceeding shall be commenced or maintained only directly by the benefit corporation or derivatively by one of the following parties:
(1) A shareholder.
(2) A benefit director.
(3) Other persons as specified in the articles or bylaws of the benefit corporation.
Acts 2012, No. 442, §1.