4-36-305. Right of action.

Arkansas Code — all titles (historical 2020) · legal_authorities

4-36-305. Right of action.

4-36-305. Right of action. (a) Except in a benefit enforcement proceeding, a person may not bring an action or assert a claim against a benefit corporation or its directors or officers with respect to: (1) Failure to pursue or create a general public benefit or a specific public benefit stated in its articles of incorporation; or (2) Violation of a duty or standard of conduct under this chapter. (b) A benefit corporation shall not be liable for monetary damages under this chapter for the failure of the benefit corporation to pursue a general public benefit or a specific public benefit. (c) A benefit enforcement proceeding may begin and be maintained only: (1) Directly by the benefit corporation; or (2) Derivatively by: (A) A shareholder; (B) A director; (C) A person or group of persons that owns beneficially or of record five percent (5%) or more of the equity interest in an entity of which the benefit corporation is a subsidiary at the time of the action or inaction complained of; or (D) Other persons as named in the articles of incorporation or bylaws of the benefit corporation.

Source: Arkansas Code — historical release 78 (November 6, 2020) · 4-36-305

Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. A text match is a research starting point; applicability is not established.