The proposed bill aims to introduce the Protecting Shareholders Act into the Code of West Virginia, establishing 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." It outlines that diversity, equity, and inclusion efforts must not influence hiring practices or provide special benefits based on race, color, ethnicity, or national origin, except as required by law. The bill also defines the environmental, social, and governance framework, emphasizing the importance of minimizing financial risk and maximizing returns for shareholders.

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 from decisions that may compromise their financial interests in favor of non-pecuniary considerations.

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