§ 5-6C-01. Definitions

   (a) In general. -- In this subtitle the following words have the meanings indicated.

(b) Benefit corporation. -- "Benefit corporation" means a Maryland corporation that elects to be a benefit corporation in accordance with § 5-6C-03 of this subtitle and has not ceased to be a benefit corporation through the operation of § 5-6C-04 of this subtitle.

(c) General public benefit. -- "General public benefit" means a material, positive impact on society and the environment, as measured by a third-party standard, through activities that promote a combination of specific public benefits.

(d) Specific public benefit. -- "Specific public benefit" includes:

   (1) Providing individuals or communities with beneficial products or services;

   (2) Promoting economic opportunity for individuals or communities beyond the creation of jobs in the normal course of business;

   (3) Preserving the environment;

   (4) Improving human health;

   (5) Promoting the arts, sciences, or advancement of knowledge;

   (6) Increasing the flow of capital to entities with a public benefit purpose; or

   (7) The accomplishment of any other particular benefit for society or the environment.

(e) Third-party standard. -- "Third-party standard" means a standard for defining, reporting, and assessing best practices in corporate social and environmental performance that:

   (1) Is developed by a person or entity that is independent of the benefit corporation; and

   (2) Is transparent because the following information about the standard is publicly available or accessible:

      (i) The factors considered when measuring the performance of a business;

      (ii) The relative weightings of those factors; and

      (iii) The identity of the persons who developed and control changes to the standard and the process by which those changes were made.

HISTORY: 2010, chs. 97, 98; 2012, ch. 135.