Arizona Laws 10-2441. Preparation of annual benefit report
A. A benefit corporation shall prepare an annual benefit report that includes all of the following:
Terms Used In Arizona Laws 10-2441
- Articles of incorporation: means the original or restated articles of incorporation or articles of merger and all amendments to the articles of incorporation or merger and includes amended and restated articles of incorporation and articles of amendment and merger. See Arizona Laws 10-140
- Benefit corporation: means a corporation that both:
(a) Has elected to become subject to this chapter. See Arizona Laws 10-2402
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- General public benefit: means a material positive impact on society and the environment, taken as a whole, assessed against a third-party standard, from the business and operations of a benefit corporation. See Arizona Laws 10-2402
- Process: means a citation, writ or summons issued in the course of judicial proceedings. See Arizona Laws 1-215
- Shares: means the units into which the proprietary interests in a corporation are divided. See Arizona Laws 10-140
- Specific public benefit: includes :
(a) Providing low-income or underserved individuals or communities with beneficial products or services. See Arizona Laws 10-2402
- Third-party standard: means a recognized standard for defining, reporting and assessing corporate social and environmental performance that is:
(a) Comprehensive because it assesses the effect of a business and its operations on the interests listed in section 10-2431, subsection A, paragraph 1. See Arizona Laws 10-2402
1. A narrative description of:
(a) The ways in which the benefit corporation pursued general public benefit during the year and the extent to which general public benefit was created.
(b) Both:
(i) The ways in which the benefit corporation pursued a specific public benefit that the articles of incorporation state is the purpose of the benefit corporation to create.
(ii) The extent to which the specific public benefit was created.
(c) Any circumstances that have hindered the benefit corporation in creating general public benefit or a specific public benefit.
(d) The process and rationale for selecting or changing the third-party standard used to prepare the benefit report.
2. An assessment of the overall social and environmental performance of the benefit corporation against a third-party standard that is either of the following:
(a) Applied consistently with any application of that standard in prior benefit reports.
(b) Accompanied by an explanation of the reasons for either of the following:
(i) Any inconsistent application.
(ii) The change to that standard from the one used in the immediately prior report.
3. The compensation paid by the benefit corporation during the year to each director in the capacity of a director.
4. A statement of any connection between the organization that established the third-party standard, or its directors, its officers or any holder of five per cent or more of the governance interests in the organization and the benefit corporation or its directors, its officers or any holder of five per cent or more of the outstanding shares of the benefit corporation, or any other financial or governance relationship that might materially affect the credibility of the use of the third-party standard.
B. Neither the benefit report nor the assessment of the performance of the benefit corporation in the benefit report required by subsection A, paragraph 2 of this section is required to be audited or certified by a third-party standards provider.