Benefit Corporation

(redirected from Benefit Corporations)

Benefit Corporation

A corporation in which the members of board of directors have the statutory duty to provide some tangible benefit to the community and/or the environment. In other words, a benefit corporation is not prohibited from earning and distributing profits, but is expected to do these other things as well. A benefit corporation is informally called a b-corp.
References in periodicals archive ?
There are currently 2,902 Benefit Corporations in the United States and 1,462 Certified B Corps(TM) in the world.
Delaware--arguably the most influential state in the nation when it comes to corporate law--joined the bandwagon last September when it passed legislation to create what it calls "public benefit corporations.
Benefit corporations are distinct from nonprofit entities in that they are permitted to operate for profit and are not eligible for tax-exempt status.
relevance to State agencies and public benefit corporations engaged in construction or
Benefit corporations are required to have a purpose of creating "general public benefit" and are permitted to identify one or more "specific public benefit" purposes.
Benefit corporations are taxed like traditional corporations, but are protected from potential shareholder lawsuits claiming they failed to maximize profits.
Legislation that would provide incentives for Benefit Corporations pursuing city contracts in San Francisco, Calif.
In addition to the interests of shareholders, directors of benefit corporations must consider the effects of their actions on (1) other "stakeholders," such as employees, suppliers, customers and the community, (2) the environment, (3) the short-and long-term interests of the benefit corporation, and (4) the ability of the benefit corporation to accomplish its general, and any specific, public benefit purpose.
The new Procurement Lobbying Law is applicable to any attempt to influence contract awards once a procurement process has been commenced by any state agency (departments, boards, bureaus, commissions, divisions, offices, councils, committees and officers of the state including those which are temporary), NYS Senate and Assembly, Public Authorities, Public Benefit Corporations, Industrial Development Agencies and Local Benefit Corporations.
Maryland, where Oliver-Grayson is organized, became the first state to authorize creation of Benefit Corporations in 2010.
companies incorporated as Public Benefit Corporations across 30 states and the District of Columbia.
Now, companies that choose to incorporate in New Jersey and who elect to be Benefit Corporations will need to consider the effects of their decisions on the environment and society as a whole as well as how they affect shareholder wealth.