Illinois Compiled Statutes 805 ILCS 40/4.20 – Right of action; benefit enforcement proceeding
Current as of: 2024 | Check for updates
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(a) No person may bring an action or assert a claim against a benefit corporation or its directors or officers with respect to failure to pursue or create general public benefit or a specific public benefit set forth in its articles of incorporation or violation of a duty or standard of conduct under this Act except in a benefit enforcement proceeding.
(b) A benefit enforcement proceeding may be commenced or 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
(b) A benefit enforcement proceeding may be commenced or maintained only:
Terms Used In Illinois Compiled Statutes 805 ILCS 40/4.20
- 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.
- Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
(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
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beneficially or of record 5% or more of the equity interests in an entity of which the benefit corporation is a subsidiary; or
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(D) other persons as specified in the articles
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of incorporation or bylaws of the benefit corporation.
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(c) A benefit corporation shall not be liable for monetary damages under this Act for any failure of the benefit corporation to pursue or create general public benefit or a specific public benefit.