Today Senate Bill 11-005, a bill for the creation of a Benefit Corporation, was introduced into the Colorado state senate. This legislation is similar to the Maryland Benefit Corporation, but there are a few major differences. We will post a more in depth comparison soon, but for now, we want to highlight two key differences.
Election of a Benefit Director
The Colorado legislation requires the election of an independent director to the board who is responsible for monitoring the actions of the Benefit Corporation in regards to it General Public Benefit and Specific Benefit. The Benefit Director is also required to draft the Annual Benefit Report.
Expanded Reporting Responsibilities
The Colorado legislation requires more detail in its Annual Benefit Report as well as requiring the Benefit Corporation to file the Annual Benefit Report with the Secretary of State.