Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Committee approves substitute creating presumption against prioritizing ESG over shareholder interests
Summary
Committee Counsel explained a committee substitute to the Senate Banking and Insurance Committee on March 19, 2025 that would add definitions to chapter 31D of the West Virginia Business Corporation Act and create a prima facie presumption that a director or officer breaches a fiduciary duty if they prioritize environmental, social and governance (ESG) or other non‑pecuniary interests over pecuniary interests.
Committee Counsel explained a committee substitute to the Senate Banking and Insurance Committee on March 19, 2025 that would add definitions to chapter 31D of the West Virginia Business Corporation Act and create a prima facie presumption that a director or officer breaches a fiduciary duty if they prioritize environmental, social and governance (ESG) or other non‑pecuniary interests over pecuniary interests.
The change matters because it shifts the initial burden in a fiduciary complaint: "prima facie evidence is generally understood to mean evidence that on its face appears sufficient to prove a case," Committee Counsel told the panel, adding that a director could rebut the presumption with evidence…
Already have an account? Log in
Subscribe to keep reading
Unlock the rest of this article — and every article on Citizen Portal.
- Unlimited articles
- AI-powered breakdowns of topics, speakers, decisions, and budgets
- Instant alerts when your location has a new meeting
- Follow topics and more locations
- 1,000 AI Insights / month, plus AI Chat
