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 related to corporate governance, specifically focusing on "diversity, equity, and inclusion," "environmental, social, and governance," and "pecuniary interest." The bill outlines that diversity initiatives should not influence hiring practices or provide special benefits based on race, color, ethnicity, or national origin, except as required by law. It also establishes that the environmental and social components of corporate governance must incorporate these definitions into decision-making processes.

Furthermore, the bill stipulates that when a director or officer of a corporation has a fiduciary duty to the corporation or its shareholders, 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 legislative change is intended to protect shareholders by ensuring that their financial interests are prioritized in corporate decision-making.

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