Patch Issued for Fiduciary Duty VULN
In Package: Financial Capitalism. Exploited in the Wild. Help Us Get This Human + A.I. Co-drafted BILL to Congress
To amend the principle of Fiduciary Duty, to unify and harmonize the principle of shareholder primacy with the principles of stakeholder governance
Detailed process of how we created this in partnership with GPT-4 can be found here.
H.R. [NNNN] - 2023
Uniform Standard for Aligning Shareholder and Stakeholder Interests for the Twenty-First Century American Economic Acceleration Act
IN THE HOUSE OF REPRESENTATIVES
Mr./Ms. [Representative’s name] introduced the following bill; which was referred to the Committee on [Committee]
To amend Title 29, United States Code, Section 1104, relating to Fiduciary Duties, to incorporate a comprehensive standard of care that considers the interests of all stakeholders.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the “Twenty-First Century American Economic Acceleration Act.”
SECTION 2. COMPREHENSIVE STANDARD OF CARE.
(a) Section 1104 of Title 29, United States Code, is amended to read as follows:
“(a) Comprehensive Standard of Care
(1) Subject to sections 1103(c) and (d), 1342, and 1344 of this title, a fiduciary shall discharge their duties with respect to a plan considering the interests of all stakeholders, including but not limited to shareholders, employees, customers, suppliers, community, environment, and
(A) for the purpose of:
(i) providing benefits to shareholders, participants, and their beneficiaries;
(ii) defraying reasonable expenses of administering the plan;
(B) with the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims, while considering the interests of all stakeholders;
(C) by diversifying the investments of the plan so as to minimize the risk of large losses and to consider the impact on all stakeholders, unless under the circumstances it is clearly prudent not to do so; and
(D) in accordance with the documents and instruments governing the plan insofar as such documents and instruments are consistent with the provisions of this subchapter and subchapter III.”
SECTION 3. PURPOSE.
This revised version of the 29 U.S. Code § 1104 - Fiduciary Duties and Standards aims to protect Directors of all Corporations from adverse legal consequences when considering and prioritizing values in addition to shareholder benefit. It acknowledges the historic prevalence of shareholder primacy while aligning with and integrating stakeholder theory, thus allowing free capital markets to express and implement the full range of their independently chosen values, freed from historical constraints of strict primacy, through investing in any corporate entity of their choice, in accordance with U.S. Code, and consistent with the practice and principles of free enterprise.