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§ 4A-1201. Definitions

West's Annotated Code of MarylandCorporations and AssociationsEffective: October 1, 2013

West's Annotated Code of Maryland
Corporations and Associations
Title 4a. Limited Liability Company Act (Refs & Annos)
Subtitle 12. Benefit Limited Liability Companies (Refs & Annos)
Effective: October 1, 2013
MD Code, Corporations and Associations, § 4A-1201
Formerly cited as MD Code, Corporations and Associations, § 4A-1101
§ 4A-1201. Definitions
In general
(a) In this subtitle the following words have the meanings indicated.
Benefit limited liability company
(b) “Benefit limited liability company” means a Maryland limited liability company that elects to be a benefit limited liability company in accordance with § 4A-1203 of this subtitle and has not ceased to be a benefit limited liability company through the operation of § 4A-1205 of this subtitle.
General public benefit
(c) “General public benefit” means a material, positive impact on society and the environment, as measured by a third-party standard, through activities that promote a combination of specific public benefits.
Specific public benefit
(d) “Specific public benefit” includes:
(1) Providing 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; or
(7) The accomplishment of any other particular benefit for society or the environment.
Third-party standard
(e) “Third-party standard” means a standard for defining, reporting, and assessing best practices in social and environmental performance that:
(1) Is developed by a person or entity that is independent of the benefit limited liability company; and
(2) Is transparent because the following information about the standard is publicly available or accessible:
(i) The factors considered when measuring the performance of a business;
(ii) The relative weightings of those factors; and
(iii) The identity of the persons who developed and control changes to the standard and the process by which those changes were made.


Added as Corporations and Associations § 4A-1101 by Acts 2011, c. 500, § 2, eff. June 1, 2011; Acts 2011, c. 501, § 2, eff. June 1, 2011. Amended by Acts 2012, c. 135, § 1, eff. June 1, 2012. Renumbered as Corporations and Associations § 4A-1201 by Acts 2013, c. 527, § 1, eff. Oct. 1, 2013; Acts 2013, c. 528, § 1, eff. Oct. 1, 2013. Amended by Acts 2013, c. 43, § 5.
MD Code, Corporations and Associations, § 4A-1201, MD CORP & ASSNS § 4A-1201
Current through legislation effective through May 9, 2024, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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