27 States Support Benefit Corporations
What Are the Benefits?
- Socially responsible purpose. By choosing to become a public benefit corporation, you will enshrine your altruistic purpose in your corporation’s articles of incorporation, making them legally binding and not just a promise.
- More protection from corporate greed. When corporations grow, there is a worry that duty to the shareholders will require abandoning the company’s commitment to doing good. In Delaware, for example, a two-thirds vote is required for any action that would terminate a company’s status as a public benefit status
- Evaluations by third-party organizations. Worries about transparency within the corporate structure may be answered by requirements that public benefit corporations be evaluated by third-party organizations to audit their “public benefit” statuses.
Related Resources:
- Delaware ‘Public Benefit Corporation’ Lets Directors Serve Three Masters Instead Of One (Forbes)
- Incorporating in Delaware? 5 Issues to Consider (FindLaw’s Free Enterprise)
- C or S Corporation: What’s the Legal Difference? (FindLaw’s Free Enterprise)
- What Is a Closely Held Corporation? (FindLaw’s Free Enterprise)
- Learn About Our DIY Business Formation Services (FindLaw Forms & Services)
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