summary
Introduced
01/10/2025
01/10/2025
In Committee
01/10/2025
01/10/2025
Crossed Over
Passed
Dead
02/04/2025
02/04/2025
Introduced Session
2025 Regular Session
Bill Summary
An Act To Create The "mississippi Benefit Corporation Act"; To Provide That A Corporation Subject To The Mississippi Benefit Corporation Act May Be Simultaneously Subject To The Mississippi Business Corporation Act And The Mississippi Professional Corporation Act; To Provide Certain Definitions; To Require A Benefit Corporation To Be Incorporated In Accordance With The Mississippi Business Corporation Act; To Provide That A Business Corporation May Elect To Become A Benefit Corporation; To Provide That A Benefit Corporation May Terminate Its Benefit Corporation Status; To Require A Benefit Corporation To Have A Purpose Of Creating General Public Benefit; To Specify The Standard Of Conduct For Benefit Corporation Directors; To Authorize The Board Of Directors Of A Benefit Corporation To Designate A Benefit Director; To Specify The Standard Of Conduct For Officers; To Authorize A Benefit Corporation To Designate A Benefit Officer; To Limit The Liability Of Benefit Corporations For Certain Actions Regarding Its Failure To Pursue General Public Benefit; To Require A Benefit Corporation To Prepare An Annual Benefit Report; To Require A Benefit Corporation To Send Its Benefit Report To Shareholders And Make It Available On Its Website Or Provide Copies Upon Request; To Bring Forward Sections 79-4-2.01, 79-4-2.02, 79-4-2.03, 79-4-2.04, 79-4-2.05, 79-4-2.06, 79-4-2.07, 79-4-3.01, 79-4-7.40, 79-4-7.48, 79-4-8.08, 79-4-8.09, 79-4-8.30, 79-4-8.41, 79-4-8.42 And 79-10-19, Mississippi Code Of 1972, For Purposes Of Possible Amendment; To Amend Section 79-4-11.04, Mississippi Code Of 1972, To Make Certain Technical Amendments; And For Related Purposes.
AI Summary
This bill creates the Mississippi Benefit Corporation Act, which establishes a new type of corporation that can pursue both financial and social/environmental goals. A benefit corporation is a standard business corporation that chooses to have an additional purpose of creating a general public benefit - defined as a material positive impact on society and the environment. Key provisions include allowing corporations to become benefit corporations by amending their articles of incorporation, requiring benefit corporations to consider the effects of their actions on employees, customers, community, and the environment when making decisions, and mandating an annual benefit report that describes how the corporation pursued its public benefit purpose. The bill allows benefit corporations to have a designated benefit director and benefit officer to help oversee these social responsibility goals. Directors and officers are given some protection from liability for decisions made in pursuit of public benefit, and shareholders have limited rights to challenge the corporation's performance. The act is voluntary, meaning traditional corporations are not required to become benefit corporations, but those that do must follow specific guidelines about considering broader societal impacts alongside financial objectives. The law will take effect on July 1, 2025, and is designed to provide a legal framework for businesses that want to pursue both profit and positive social change.
Committee Categories
Business and Industry
Sponsors (1)
Last Action
Died In Committee (on 02/04/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://billstatus.ls.state.ms.us/2025/pdf/history/HB/HB0342.xml |
| BillText | https://billstatus.ls.state.ms.us/documents/2025/html/HB/0300-0399/HB0342IN.htm |
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