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Exclusive Online Content: Benefit Corporation Legislation: Safeguards for Businesses Giving Back

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1 HOUR CLE CREDIT
1. A “social enterprise” is an organization that: a. Must be nonprofit. b. Seeks to benefit multiple stakeholders. c. Must be for-profit. d. Seeks to benefit only its shareholders. 2. CSR is an acronym for corporate social responsibility TRUE OR FALSE 3. A B Corporation is a new type of corporate form TRUE OR FALSE 4. Benefit corporations serve the needs of: a. Shareholders. b. The public in general. c. Impact investors. d. Social entrepreneurs. e. All of the above. 5. Nevada has a constituency statute that requires corporate directors to consider the interest of constituencies other than shareholders TRUE OR FALSE 6. The Model Legislation requires corporate directors to consider the interest of constituencies other than shareholders TRUE OR FALSE 7. As of November, 2012, these States have benefit corporation laws: a. California, Louisiana, South Carolina, and Illinois. b. Maryland, Vermont, Massachusetts and Maine. c. Maryland, California, Washington and Oregon. d. California, New York, North Carolina & Hawaii. 8. Under the Model Legislation, one of the three main characteristics of a benefit corporation is that it must report its financial, social and environmental performance publicly. TRUE OR FALSE 9. The Model Legislation replaces the corporate code entirely for benefit corporations. TRUE OR FALSE 10. A “general public benefit” is defined by the Model Legislation as: a. A marginally positive impact on society and the environment, taken as a whole, assessed against a third-party standard from the business and operations of a benefit corporation. b. c. d. A material positive impact on society and the environment, taken as a whole, assessed against an internal standard from the business and operations of a benefit corporation. A material impact on a segment of society, assessed against a third-party standard from the business and operations of a benefit corporation. A material positive impact on society and the environment, taken as a whole, assessed against a third-party standard from the business and operations of a benefit corporation.
11. In order to become a benefit corporation, an existing corporation must amend its articles of incorporation to state that it plans to become a benefit corporation. TRUE OR FALSE 12. The Model Legislation states that the creation of a general public benefit is in the best interest of the benefit Corporation. TRUE OR FALSE 13. The Model Legislation requires all benefit corporations to elect a Benefit Director in the same way that other corporate officers are elected. TRUE OR FALSE 14. If a benefit corporation fails to provide a public benefit the Model Legislation creates a cause of action enforceable by: a. The benefit corporation or its shareholders. b. The public or the corporation’s shareholders. c. The Attorney General. d. The public and the Attorney General. 15. The enforcement cause of action created under the Model Legislation is called a benefit effectiveness proceeding. TRUE OR FALSE 16. Under the Model Legislation, benefit enforcement proceedings are limited to a more narrow category of persons than a normal derivative suit. TRUE OR FALSE 17. Under the Model Legislation, benefit corporations must file a benefit report annually with the Secretary of State. TRUE OR FALSE 18. Benefit enforcement proceedings under the Model Legislation encourage litigation abuses by granting a cause of action to a broad scope of constituents. TRUE OR FALSE
THREE EASY STEPS TO CLE CREDIT - $40
1)  Read the ar cle   2) Answer the quiz ques ons   ) Mail the completed form and $40 processing fee to:   3
STATE BAR OF NEVADA P.O. BOX 50 LAS VEGAS, NV 89125‐0500 or fax to: (702) 405‐5680 Make checks payable to the State Bar of Nevada.
{ Test 20 }
ANSWER THE FOLLOWING QUESTIONS

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