N.Y. Business Corporation Law § 1708: Annual benefit report

§ 1708. Annual benefit report.

(a) A benefit corporation must deliver to each shareholder an annual

benefit report including:

(1) a narrative description of:

(A) the process and rationale for selecting the third party standard

used to prepare the benefit report;

(B) the ways in which the benefit corporation pursued general public

benefit during the year and the extent to which general public benefit

was created;

(C) the ways in which the benefit corporation pursued any specific

public benefit that the certificate of incorporation states it is the

purpose of the benefit corporation to create and the extent to which

that specific public benefit was created; and

(D) any circumstances that have hindered the creation by the benefit

corporation of general or specific public benefit;

(2) an assessment of the performance of the benefit corporation,

relative to its general public benefit purpose assessed against a

third-party standard applied consistently with any application of that

standard in prior benefit reports or accompanied by an explanation of

the reasons for any inconsistent application and, if applicable,

assessment of the performance of the benefit corporation, relative to

its specific public benefit purpose or purposes;

(3) the compensation paid by the benefit corporation during the year

to each director in that capacity; and

(4) the name of each person that owns beneficially or of record five

percent or more of the outstanding shares of the benefit corporation.

(b) The benefit report must be sent annually to each shareholder

within one hundred twenty days following the end of the fiscal year of

the benefit corporation. Delivery of a benefit report to shareholders is

in addition to any other requirement to deliver an annual report to

shareholders.

(c) A benefit corporation must post its most recent benefit report on

the public portion of its website, if any, except that the compensation

paid to directors and any financial or proprietary information included

in the benefit report may be omitted from the benefit report as posted.

(d) Concurrently with the delivery of the benefit report to

shareholders pursuant to paragraph (b) of this section, the benefit

corporation must deliver a copy of the benefit report to the department

for filing, except that the compensation paid to directors and any

financial or proprietary information included in the benefit report may

be omitted from the benefit report as filed under this section.

(e) The annual benefit report shall be in addition to all other

reporting requirements under this chapter.