SB14 Alabama 2013 Session

Summary

Primary Sponsor

Cam Ward

Republican

Session

Regular Session 2013

Title

Corporations, definition, authorization and regulation of a benefit corporation

Summary

SB14 would authorize Alabama corporations to form or convert to benefit corporations, set new governance rules, and require regular public-benefit reporting.

What This Bill Does

It creates a legal option for businesses to become benefit corporations and defines key terms. It requires a minimum status vote to form or convert, establishes a requirement for a benefit director and a benefit officer, and obligates annual benefit reporting with third-party standards. It also sets expectations for pursuing general and specific public benefits and defines enforcement and potential status changes if reporting lapses.

Who It Affects

• Existing Alabama for-profit corporations that elect to become or form as benefit corporations and thus adopt new governance and reporting requirements.
• Shareholders, directors (including the independent benefit director) and officers who must consider public benefits in decision-making, and who must prepare and receive the annual benefit report.

Key Provisions

• Authorizes formation and conversion of benefit corporations and requires a minimum status vote for these actions.
• Creates a benefit director (independent) and a benefit officer, with duties to monitor public-benefit performance and report to shareholders.
• Requires general public benefit as a corporate purpose and allows specific public benefits to be identified in the articles.
• Requires annual benefit reports with third-party standards, posting on a website, and filing with the Secretary of State; failure to file can lead to forfeiture of benefit corporation status.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Corporations