The proposed bill aims to amend the Code of West Virginia by introducing the Protecting Shareholders Act, which includes two new sections, 31D-8-870 and 31D-8-871. This legislation provides definitions for key terms such as "diversity, equity, and inclusion," "environmental, social, and governance," and "pecuniary interest." The bill outlines that diversity, equity, and inclusion efforts must not influence hiring or employment practices based on race, color, sex, ethnicity, or national origin, except in compliance with applicable laws. Additionally, it establishes a framework for evaluating a corporation's non-pecuniary behavior, particularly in relation to environmental and social governance factors.

Furthermore, the bill specifies that when a director or officer of a corporation has a fiduciary duty, prioritizing any aspect of environmental, social, and governance interests over the financial interests of shareholders will be considered prima facie evidence of a breach of that fiduciary duty. This provision aims to protect shareholders by ensuring that corporate decisions remain focused on maximizing financial returns rather than non-pecuniary considerations.

Statutes affected:
Introduced Version: 31D-8-870, 31D-8-871
Committee Substitute: 31D-8-870, 31D-8-871