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Arkansas Code Title 4. Business and Commercial Law § 4-36-305. Right of action

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

(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.

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Cite this article: FindLaw.com - Arkansas Code Title 4. Business and Commercial Law § 4-36-305. Right of action - last updated March 28, 2024 | https://codes.findlaw.com/ar/title-4-business-and-commercial-law/ar-code-sect-4-36-305/

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