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Pennsylvania · Through 2026-07-28 (Statute Update stamp, 15 Pa.C.S.)

15 Pa.C.S. § 3325: Right of action.

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Where this section sits in the code
  1. Title 15 - CORPORATIONS AND UNINCORPORATED ASSOCIATIONS
  2. PART II CORPORATIONS
  3. SUBPART B BUSINESS CORPORATIONS
  4. ARTICLE C DOMESTIC BUSINESS CORPORATION ANCILLARIES
  5. CHAPTER 33 BENEFIT CORPORATIONS
  6. SUBCHAPTER C ACCOUNTABILITY

(a) Limitations.--

(1) 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:

(i) failure to pursue or create general public benefit or a specific public benefit set forth in its articles; or

(ii) violation of a duty or standard of conduct under this chapter.

(2) 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.

(b) Parties with standing.--A benefit enforcement proceeding may be commenced or maintained only:

(1) directly by the benefit corporation; or

(2) derivatively by:

(i) a shareholder that owned at least 2% of the total number of shares of a class or series outstanding at the time of the act complained of;

(ii) a director;

(iii) a person or group of persons that owns beneficially or of record 5% or more of the interests in an association of which the benefit corporation is a subsidiary at the time of the act complained of; or

(iv) such other persons as may be specified in the articles or bylaws of the benefit corporation.

(c) Cross reference.--The provisions of Subchapter F of Chapter 17 (relating to derivative actions) shall apply to derivative actions under this section.

Collected 2026-09-02T16:31:13Z. Source file · JSON

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