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Arkansas Code Title 4. Business and Commercial Law § 4-36-303. Standard of conduct for officers

Current as of March 28, 2024 | Updated by Findlaw Staff

(a) An officer of a benefit corporation shall consider the interests and factors described in § 4-36-301 if:

(1) The officer has discretion to act with respect to a matter; and

(2) It reasonably appears to the officer that the matter may have a material effect on the creation by the benefit corporation of a general public benefit or a specific public benefit identified in the articles of incorporation of the benefit corporation.

(b) The consideration of interests and factors described in subsection (a) of this section shall not constitute a violation of § 4-27-841.

(c) An officer is not personally liable for monetary damages for:

(1) An action or omission as an officer if the officer performed the duties of the position in compliance with § 4-27-841 and this section; or

(2) Failure of the benefit corporation to pursue a general public benefit or a specific public benefit.

(d) An officer does not have a duty to a person that is a beneficiary of a general public benefit purpose or a specific public benefit purpose of a benefit corporation arising from the status of the person as a beneficiary.

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Cite this article: FindLaw.com - Arkansas Code Title 4. Business and Commercial Law § 4-36-303. Standard of conduct for officers - last updated March 28, 2024 | https://codes.findlaw.com/ar/title-4-business-and-commercial-law/ar-code-sect-4-36-303/

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