Staff Analysis of the Legislation
|
|
HB 278 amends Chapter 2 of Title 14 of the OCGA by defining benefit corporations, public benefits, and public benefit provisions. In order to be a benefit corporation, it must satisfy Code Section 14-2-401 requirements and any stock issued by one must state it is from a benefit corporation. In addition, HB 278 adds that a non-benefit corporation may amend its articles to include a public benefit provision, transfer property if the transferee is a benefit or social purpose corporation, and engage in transactions under Part 1 of Article 11 of Code 14-2-1202. The board of directors of a benefit corporation must adopt standards that act in the public benefit, and truthfully publish more frequent reports that state the public benefits. |
