2013 HB 40 Designation Of Benefit Corporations

CVNM Position:
Zachary J. Cook
Timothy M. Keller
Effective Government
Legislative Info:
HB 40 on nmlegis.gov »


HB 40 is a common-sense measure that allows corporations to voluntarily designate themselves as “benefit corporations”, which gives them greater latitude of purpose than simple profit maximization. Benefit corporations can include social and environmental benefits in their purposes, and HB 40 specifies certain responsibilities for reporting and accountability. Protections in the bill ensure that individual shareholders can opt out at the time of designation and receive payment for their shares, and the bill also limits liability if the corporation fails to achieve its stated social or environmental purposes


HB 40 passed the House (62-3) and passed the Senate (33-6) but was pocket vetoed by the Governor.

How Legislators Voted on HB 40

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