{"data":{"id":"us-dc/d.c.-code-29-1303.02","jurisdiction":"us-dc","citation":"D.C. Code § 29-1303.02","heading":"Benefit director.","body":"(a)\nThe board of directors of a benefit corporation shall include one director, who:\n(1)\nShall be designated the benefit director; and\n(2)\nShall have, in addition to the powers, duties, rights, and immunities of the other directors of the benefit corporation, the powers, duties, rights, and immunities provided in this subchapter.\n\n(b)\nThe benefit director shall be elected, and may be removed, in the manner provided by subchapter VI of Chapter 3 of this title, and shall be an individual who is independent. The benefit director may serve as the benefit officer at the same time as serving as the benefit director. The articles of incorporation or bylaws of a benefit corporation may prescribe additional qualifications of the benefit director not inconsistent with this section.\n\n(c)\nThe benefit director shall prepare, and the benefit corporation shall include in the annual benefit report to shareholders required by § 29-1304.01, the opinion of the benefit director on each of the following:\n(1)\nWhether the benefit corporation acted in accordance with its general public benefit purpose and any specific public benefit purpose in all material respects during the period covered by the report; and\n(2)\nWhether the directors and officers complied with §§ 29-1303.01(a) and 29-1303.03(a), respectively.\n(3)\nIf, in the opinion of the benefit director, the benefit corporation or its directors or officers failed to comply with §§ 29-1303.01(a) and 29-1303.03(a), a description of the ways in which the benefit corporation or its directors or officers failed to comply.\n\n(d)\nThe acts of an individual in the capacity of a benefit director shall constitute for all purposes acts of that individual in the capacity of a director of the benefit corporation.\n\n(e)\n(1)\nIf an agreement among the shareholders of a benefit corporation under § 29-305.42 provides that the powers and duties conferred or imposed upon the board of directors shall be exercised or performed by a person other than the directors, the bylaws of a benefit corporation must provide that the persons or shareholders who perform the duties of the board of directors include a person with the powers, duties, rights, and immunities of a benefit director.\n(2)\nA person that exercises one or more of the powers, duties or rights of a benefit director under this subsection:\n(A)\nDoes not need to be independent of the benefit corporation;\n(B)\nShall have the immunities of a benefit director;\n(C)\nMay share the powers, duties, and rights of a benefit director with one or more other persons; and\n(D)\nShall not be subject to the procedures for election or removal of directors in § 29-306 unless:\n(i)\nThe person is also a director of the benefit corporation; or\n(ii)\nThe bylaws make those procedures applicable.\n\n(f)\nRegardless of whether the articles of incorporation of a benefit corporation include a provision eliminating or limiting the personal liability of directors authorized by § 29-302.02(b)(4), a benefit director shall not be personally liable for any action taken, or any failure to take any action, as a director, except liability for:\n(1)\nThe amount of a financial benefit received by a director to which the director is not entitled;\n(2)\nAn intentional infliction of harm on the corporation or the shareholders;\n(3)\nA violation of § 29-306.32; or\n(4)\nA violation of criminal law.","path":["Title 29. Business Organizations. [Enacted title]","Chapter 13. Benefit Corporations.","Subchapter III. Accountability."],"source_url":"https://code.dccouncil.gov/us/dc/council/code/sections/29-1303.02","current_through":"2026-08-20 (D.C. Law 26-175)","vintage":"","retrieved_at":"2026-08-29T05:44:07Z","sha256":"ab12ed5a2bcfb0c510bc5140d19f331674fd7f7236bc765c924b624eac3ebfb1","source_id":"us-dc","stale":false,"prev":"us-dc/d.c.-code-29-1303.01","next":"us-dc/d.c.-code-29-1303.03"},"notice":"GroundRules: Original legal text. Not legal advice."}