AN ACT relating to business corporations.

Amend KRS 271B.8-300 to define terms; provide that the business judgment rule shall not be an affirmative defense where the alleged damages suffered by the corporation are the result of diversity, equity, and inclusion (DEI) initiatives or environmental, social, and governance (ESG) investing; provide that a director shall not be considered to be acting in good faith if he or she takes any action to implement or maintain DEI initiatives or ESG investing; provide that…

Introduced: February 6, 2025

Last action: February 12, 2025

To Judiciary (H)

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This bill would change Kentucky corporate law to make it easier to sue company directors over decisions related to diversity, equity, and inclusion programs or environmental, social, and governance investing strategies. It removes a standard legal protection that directors normally rely on when defending business decisions, specifically when those decisions involve DEI or ESG activities. If a shareholder wins a lawsuit on these grounds, the bill requires the court to award them attorney's fees, costs,…

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