D.C. Code § 29-1303.05: Right of action.
Where this section sits in the code
- Title 29. Business Organizations. [Enacted title]
- Chapter 13. Benefit Corporations.
- Subchapter III. Accountability.
(a)
Except in a benefit enforcement proceeding, no person may 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 general public benefit or a specific public benefit set forth 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 any failure of the benefit corporation to pursue or create general public benefit or a specific public benefit.
(c)
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 beneficially or of record 5% or more of the equity interests in an entity of which the benefit corporation is a subsidiary; or
(D)
Other persons as specified in the articles of incorporation or bylaws of the benefit corporation.
Collected 2026-08-29T05:44:07Z. Source file · JSON