Sunday, July 28, 2013

A new kind of corporation for public benefit

See Delaware Governor Jack Markell's article on a new law to be enacted August 1 in his State. A few excerpts:

"On July 17, I signed into law a bill enabling the formation of a new type of corporation that is hard wired to compete to be the best in America at being the best for America.These new Delaware public benefit corporations will harness the power of private enterprise to create public benefit.

"Many of the businesses considering this new corporate structure [...] feel understandably constrained by existing corporate law that recognizes only one legitimate corporate purpose -- to maximize value for stockholders.  Delaware public benefit corporations will function like and enjoy all the same benefits as traditional Delaware corporations and they will have three unique features that make them potential game changers. These three features concern corporate purpose, accountability, and transparency."

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