(a)  A benefit corporation may have an officer designated as the benefit officer.

Terms Used In Rhode Island General Laws 7-5.3-10

  • Benefit officer: means the individual, if any, designated as the benefit officer of a benefit corporation under § 7-5. See Rhode Island General Laws 7-5.3-2
  • 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 Rhode Island General Laws 7-5.3-2
  • Specific public benefit: includes :

    (i)  Providing low-income or underserved individuals or communities with beneficial products or services;

    (ii)  Promoting economic opportunity for individuals or communities beyond the creation of jobs in the normal course of business;

    (iii)  Protecting or restoring the environment;

    (iv)  Improving human health;

    (v)  Promoting the arts, sciences, or advancement of knowledge;

    (vi)  Increasing the flow of capital to entities with a purpose to benefit society or the environment; and

    (vii)  Conferring any other particular benefit on society or the environment. See Rhode Island General Laws 7-5.3-2

(b)  A benefit officer shall have:

(1)  The powers and duties relating to the purpose of the corporation to create general public benefit or specific public benefit provided:

(i)  By the bylaws; or

(ii)  Absent controlling provisions in the bylaws, by resolutions or orders of the board of directors.

(2)  The duty to prepare the benefit report required by § 7-5.3-12.

History of Section.
P.L. 2013, ch. 487, § 1; P.L. 2013, ch. 500, § 1.