The Vermont Statutes Online
The Vermont Statutes Online does not include the actions of the 2024 session of the General Assembly. We expect them to be updated by November 1st.
NOTE: The Vermont Statutes Online is an unofficial copy of the Vermont Statutes Annotated that is provided as a convenience.
Title 11A : Vermont Business Corporations
Chapter 021 : Benefit Corporations
(Cite as: 11A V.S.A. § 21.11)-
§ 21.11. Standard of conduct for officers
(a) An officer of a benefit corporation shall consider the interests and factors described in subsection 21.09(a) of this title in the manner provided in that subsection when:
(1) the officer has discretion in how to act or not act with respect to a matter; and
(2) it reasonably appears to the officer that the matter may have a material effect on:
(A) the creation of general or specific public benefit by the benefit corporation; or
(B) any of the interests or factors referred to in subdivision 21.09(a)(1) of this title.
(b) The consideration of interests and factors in the manner described in subsection (a) of this section shall not constitute a violation of the fiduciary duty of an officer to the benefit corporation.
(c) An officer is not liable to the benefit corporation or any person entitled to bring a benefit enforcement proceeding under section 21.13 of this title for any action or failure to take action in his or her official capacity if the officer performed the duties of the position in compliance with section 8.41 of this title and with this section.
(d) An officer is not liable for the failure of a benefit corporation to create general or specific public benefit.
(e) An officer of a benefit corporation shall not have any duty to a person that is a beneficiary of the general or specific public benefit purposes of the benefit corporation arising only from the person’s status as a beneficiary.
(f) The articles of incorporation of a benefit corporation may set forth a provision eliminating or limiting the liability of an officer to the benefit corporation or its shareholders for money damages for any action taken, or any failure to take any action, solely as an officer, based on a failure to discharge his or her own duties in accordance with this chapter, except liability for:
(1) the amount of a financial benefit received by an officer to which the officer is not entitled;
(2) an intentional or reckless infliction of harm on the benefit corporation or its shareholders; or
(3) an intentional or reckless criminal act. (Added 2009, No. 113 (Adj. Sess.), § 1, eff. July 1, 2011; amended 2011, No. 146 (Adj. Sess.), § 1.)
