Rhode Island General Laws 7-5.3-4. Election of benefit corporation status
(a) An existing corporation may become a benefit corporation under this chapter by amending its articles of incorporation so that they contain, in addition to the requirements of § 7-1.2-202, a statement that the corporation is a benefit corporation. In order to be effective, the amendment must be adopted by at least the minimum status vote.
Terms Used In Rhode Island General Laws 7-5.3-4
- Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
- Benefit corporation: means a corporation for profit with purposes set forth in Rhode Island General Laws 7-5.3-2
- 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.
- Minimum status vote: means :
(i) In the case of a corporation, in addition to any other required approval or vote, the satisfaction of the following conditions:
(A) The shareholders of every class or series shall be entitled to vote as a class on the corporate action regardless of a limitation stated in the articles of incorporation or bylaws on the voting rights of any class or series. See Rhode Island General Laws 7-5.3-2
(b) If an entity that is not a benefit corporation is a party to a merger or conversion and the surviving or resulting entity in the merger or consolidation is to be a benefit corporation, the merger or conversion must be approved by the entity by at least the minimum status vote.
History of Section.
P.L. 2013, ch. 487, § 1; P.L. 2013, ch. 500, § 1.