§ 1708. Annual benefit report.

(a) A benefit corporation must deliver to each shareholder an annual
benefit report including:

(1) a narrative description of:

(A) the process and rationale for selecting the third party standard
used to prepare the benefit report;

(B) the ways in which the benefit corporation pursued general public
benefit during the year and the extent to which general public benefit
was created;

(C) the ways in which the benefit corporation pursued any specific
public benefit that the certificate of incorporation states it is the
purpose of the benefit corporation to create and the extent to which
that specific public benefit was created; and

(D) any circumstances that have hindered the creation by the benefit
corporation of general or specific public benefit;

(2) an assessment of the performance of the benefit corporation,
relative to its general public benefit purpose assessed against a
third-party standard applied consistently with any application of that
standard in prior benefit reports or accompanied by an explanation of
the reasons for any inconsistent application and, if applicable,
assessment of the performance of the benefit corporation, relative to
its specific public benefit purpose or purposes;

(3) the compensation paid by the benefit corporation during the year
to each director in that capacity; and

(4) the name of each person that owns beneficially or of record five
percent or more of the outstanding shares of the benefit corporation.

(b) The benefit report must be sent annually to each shareholder
within one hundred twenty days following the end of the fiscal year of
the benefit corporation. Delivery of a benefit report to shareholders is
in addition to any other requirement to deliver an annual report to
shareholders.

(c) A benefit corporation must post its most recent benefit report on
the public portion of its website, if any, except that the compensation
paid to directors and any financial or proprietary information included
in the benefit report may be omitted from the benefit report as posted.

(d) Concurrently with the delivery of the benefit report to
shareholders pursuant to paragraph (b) of this section, the benefit
corporation must deliver a copy of the benefit report to the department
for filing, except that the compensation paid to directors and any
financial or proprietary information included in the benefit report may
be omitted from the benefit report as filed under this section.

(e) The annual benefit report shall be in addition to all other
reporting requirements under this chapter.