HB1154

Establishes public benefit corporations in South Dakota, allowing for-profit entities to pursue public benefits.

South Dakota HB1154 establishes the framework for public benefit corporations, allowing for-profit entities to pursue public benefits alongside their profit goals. These corporations must balance shareholder interests with public benefit objectives. Shareholders can dissent and receive fair value if the corporation merges or transfers without their approval. Directors are not liable for failing to pursue public benefits unless they breach their duties. Corporations must file annual benefit reports and can lose their status if they fail to meet requirements. The act takes effect July 1, 2027.