NY Creates “Benefit Corporation”
Check out our new Benefit Corporation Law (formatted for readability). A Benefit Corporation is kinda like a for-profit with a conscience or a non-profit with shareholders.
WNYC and Forbes each have a quick writeup, but for the real nitty-gritty, follow Dumbo’s Social Enterprise expert @kylewestaway. His timely WSJ article is worth a read (including the comments).
Overall, I love the theory: corporations will no longer be forced to maximize shareholder profit at the expense of the environment or other social goods. But, are corporations really worried about shareholder litigation (business judgment rule, etc.)? I suspect the more egregious corporate actions stem from an effort to maximize executive pay & stock option value.
And, as my partners might say:
Benefit Corp or otherwise, its still malpractice to advise a client to incorporate in New York.