SB 850
Creating Protecting Shareholders Act
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Sign in to take action- Introduced
- Passed Senate
- Passed House of Delegates
- To Governor
- Became Law
Bill overview
Senate Bill 850 seeks to establish a framework for determining breaches of fiduciary duty related to investments in West Virginia. The bill defines key terms like ‘environmental, social, and governance’ (ESG) and ‘pecuniary interest,’ and it proposes that prioritizing ESG programs or non-pecuniary interests over the financial interests of investors constitutes a potential breach of fiduciary duty. This legislation aims to provide clearer standards for evaluating such situations.
Key provisions
- Defines ‘environmental, social, and governance’ (ESG) as a framework considering environmental impact, social responsibility, and corporate governance.
- Defines ‘pecuniary interest’ as an interest focused on financial risk and return.
- Establishes that prioritizing ESG programs or non-pecuniary interests over investor financial interests is prima facie evidence of a breach of fiduciary duty.
- Creates new sections of law to implement the Protecting Investors Act.
Who is affected
- Investors
- Corporate directors and officers
- Financial institutions
- Companies operating in West Virginia
Notable changes
- Introduces a specific legal standard for evaluating breaches of fiduciary duty related to ESG considerations.
- Provides a framework for prioritizing financial interests over non-financial interests in investment decisions.
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