Tennessee § 48-28-106 - Duties of director.

§ 48-28-106. Duties of director.

In discharging the duties of the position of director of a for-profit benefit corporation, a director shall consider the effects of any contemplated, proposed, or actual transaction or other conduct on the interests of those materially affected by the corporation's conduct, including the pecuniary interests of shareholders, and the public benefit or public benefits identified in its charter and shall not give regular, presumptive, or permanent priority to the interests of any individual constituency or limited group of constituencies materially affected by the corporation's conduct, including the pecuniary interests of shareholders. A director of a for-profit benefit corporation shall not, by virtue of the public benefit provisions authorized by § 48-28-104(d), have any duty to any person on account of any interest of such person in the public benefit or public benefits identified in the charter. A director who performs the duties of a director stated in subsection (a) is not liable by reason of being or having been a director of a for-profit benefit corporation under § 48-18-301. The charter of a for-profit benefit corporation may include a provision that any disinterested failure to satisfy this section shall not, for the purposes of §§ 48-18-301 and 48-18-302 or §§ 48-18-501 – 48-18-509, constitute an act or omission not in good faith, or a breach of the duty of loyalty. Acts 2015, ch. 497, § 1. Compiler's Notes. Section 48-18-303, previously referred to in this section, was repealed by Acts 2012, ch. 1051, § 30, effective January 1, 2013. Law Reviews. To “B” or not to “B”: Duties of Directors and Rights of Stakeholders in Benefit Corporations, 70 Vand. L. Rev. En Banc 87 (2017).