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Wednesday, February 9, 2011

New Legislation Introduced to Create For-Benefit Corproations

California Senator DeSaulnier yesterday introduced the latest legislation in the trend to create alternatives corporate forms for entrepreneurs who desire to mix money and mission in a for-benefit corporation.  The Corporate Flexibility Act of 2011 continues the trend among states recognizing that the existing choices of for-profit and not-for-profit leaves entrepeneurs who seek a blended value with a binary Hobson's choice.

No longer.

Last year, Maryland and Vermont passed a version of B Labs Benefit Coropration Law.  Numerous other states are considering similar legislation. California's effort stands apart from these other efforts in several ways.

Stay tuned for my ruminations on what is happening, why and what to expect as this field develops.

*Todd is a partner at the law firm of Jones Day, where he founded their Silicon Valley Office and runs their Renewable Energy and Sustainability Practice. The views expressed in this column are solely Todd’s personal views, not the views of Jones Day or its clients, and the information provided as to his affiliation with Jones Day is solely for purposes of identification and may not and should not be construed to imply endorsement or even support by Jones Day of the views expressed herein. © R. Todd Johnson, 2010. The thoughts, ideas and words expressed in this column are the property of R. Todd Johnson and may not be otherwise used or reprinted without express permission from Todd.

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