We’ve been approached on a number of occasions by clients seeking to become benefit corporations (often referred to as B-Corps). This week we’ll outline what B-Corp status entails, and why you might want to consider it for your company.
What’s a Benefit Corporation?
Benefit corporations are incorporated for the dual benefit of the public and its shareholders. It essentially allows for directors to contemplate broader community or environmental purposes in their decision making – instead of acting solely on the part of shareholders.
You can read California’s Benefit Corporations legislation (AB-361) here.
Benefits of B-Corp Status
Beyond the increased decision-making flexibility, benefit corporation status can provide a significant competitive advantage.
Consumers are becoming increasingly conscious of the impact their purchasing habits has on the world. B-Corp status makes a statement to the conscious public that your company cares about a particular social issue, generating additional investment and customer and staff loyalty.
Changing Your Articles of Incorporation
If you decide that becoming a benefit corporation is a good business move for you, you’ll need to adjust your articles of incorporation. That’s where we come in.
If your company needs assistance meeting the legal requirements to become a benefit corporation, we’re here to help. Please feel free to reach out.
Disclaimer
The materials available at this website are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. Use of and access to this website or any of the e-mail links contained within the site do not create an attorney-client relationship between CGL and the user or browser. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney.
