NY Bus Corp L § 1702 (2021)
2021 New York Laws BSC - Business Corporation Article 17 - Benefit Corporations 1702 - Definitions.

§ 1702. Definitions.   As  used  in  this article, unless the context otherwise requires, the term:  (a) "Benefit corporation" means a  business  corporation  incorporated under  this  article  and  whose status as a benefit corporation has not been terminated as provided in this article.  (b) "General public benefit"  means  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.  (c)  "Independent"  means  that  a person has no material relationship with a benefit corporation  or  any  of  its  subsidiaries.  A  material relationship  between  a  person and a benefit corporation or any of its subsidiaries will be conclusively presumed to exist if:  (1) the person is, or  has  been  within  the  last  three  years,  an employee of the benefit corporation or any of its subsidiaries;  (2)  an  immediate  family member of the person is, or has been within the last three years, an executive officer of the benefit corporation or any of its subsidiaries; or  (3) the person, or an entity  of  which  the  person  is  a  director, officer  or other manager or in which the person owns beneficially or of record five percent or more of the equity interests,  owns  beneficially or  of  record  five  percent  or  more  of  the  shares  of the benefit corporation. A percentage of ownership in an entity shall be  calculated as  if  all outstanding rights to acquire equity interests in the entity had been exercised.  (d) "Minimum status  vote"  means  that,  in  addition  to  any  other approval   or   vote  required  by  this  chapter,  the  certificate  of incorporation or a bylaw adopted by the shareholders:  (1) The holders of shares of every class or series that  are  entitled to  vote on the corporate action shall be entitled to vote as a class on the corporate action; and  (2) The corporate action must be approved by vote of the  shareholders of  each class or series entitled to cast at least three-quarters of the votes that all shareholders of the class or series are entitled to  cast thereon.  (e) "Specific public benefit," includes:  (1)  providing  low-income  or  underserved 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; and  (7) the accomplishment of any other particular benefit for society  or the environment.  (f)  "Subsidiary"  means an entity in which a person owns beneficially or of record fifty percent or more of the equity interests. A percentage of ownership in an entity shall be  calculated  as  if  all  outstanding rights to acquire equity interests in the entity had been exercised.  (g)  "Third-party  standard" means a recognized standard for defining, reporting and assessing general public benefit that is:  (1)  developed  by  a  person  that  is  independent  of  the  benefit corporation; and  (2)  transparent  because the following information about the standard is publicly available:  (A) the  factors  considered  when  measuring  the  performance  of  a business;  (B) the relative weightings of those factors; and  (C)  the  identity of the persons who developed and control changes to the standard and the process by which those changes are made.