{"data":{"id":"us-ar/ark.-code-ann.-4-36-305","jurisdiction":"us-ar","citation":"Ark. Code Ann. § 4-36-305","heading":"Right of action","body":"(a) Except in a benefit enforcement proceeding, a person may not 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 a general public benefit or a specific public benefit stated 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 the failure of the benefit corporation to pursue a general public benefit or a specific public benefit. (c) A benefit enforcement proceeding may begin and be 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 five percent (5%) or more of the equity interest in an entity of which the benefit corporation is a subsidiary at the time of the action or inaction complained of; or (D) Other persons as named in the articles of incorporation or bylaws of the benefit corporation. Added by Act 2013, No. 1388,§ 1, eff. 8/16/2013.\n\n(a) Except in a benefit enforcement proceeding, a person may not 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 a general public benefit or a specific public benefit stated in its articles of incorporation; or (2) Violation of a duty or standard of conduct under this chapter.\n\n(1) Failure to pursue or create a general public benefit or a specific public benefit stated in its articles of incorporation; or\n\n(2) Violation of a duty or standard of conduct under this chapter.\n\n(b) A benefit corporation shall not be liable for monetary damages under this chapter for the failure of the benefit corporation to pursue a general public benefit or a specific public benefit.\n\n(c) A benefit enforcement proceeding may begin and be 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 five percent (5%) or more of the equity interest in an entity of which the benefit corporation is a subsidiary at the time of the action or inaction complained of; or (D) Other persons as named in the articles of incorporation or bylaws of the benefit corporation.\n\n(1) Directly by the benefit corporation; or\n\n(2) Derivatively by: (A) A shareholder; (B) A director; (C) A person or group of persons that owns beneficially or of record five percent (5%) or more of the equity interest in an entity of which the benefit corporation is a subsidiary at the time of the action or inaction complained of; or (D) Other persons as named in the articles of incorporation or bylaws of the benefit corporation.\n\n(A) A shareholder;\n\n(B) A director;\n\n(C) A person or group of persons that owns beneficially or of record five percent (5%) or more of the equity interest in an entity of which the benefit corporation is a subsidiary at the time of the action or inaction complained of; or\n\n(D) Other persons as named in the articles of incorporation or bylaws of the benefit corporation.","path":["AR Code","Title 4","Chapter 36","Subchapter 3"],"source_url":"https://oss-data-us.vaquill.ai/v2026.08/us_ar_statutes.parquet","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:41Z","sha256":"dd1825bf493a115ce16fa9b346df6f4631a94b1870e2e1cee542372edbd76d3b","source_id":"us-ar","stale":false,"prev":"us-ar/ark.-code-ann.-4-36-304","next":"us-ar/ark.-code-ann.-4-36-401"},"notice":"GroundRules: Original legal text. Not legal advice."}