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Wednesday, March 20, 2013

More States Moving Towards Integrated Corporate Statutes

For those keeping track, several new states have recently introduced legislation providing for integrated corporate structures for social entrepreneurs, with the most recent announcement coming today in a watershed moment as Delaware, the "grand-daddy" of the corporate bar, announced the introduction of legislation for a Public Benefit Corporation.

Delaware's proposed legislation looks a good deal like the California Flexible Purpose Corporation, rather than the Benefit Corporation option being pushed by my friends at B Labs.  (Colorado has also introduced legislation that looks more similar to the Flexible Purpose Corporation than the Benefit Corporation, Washington has already passed legislation modeled on the Flexible Purpose Corporation, and a number of states are considering options similar to the California model.)

Of course, the Benefit Corporation model is also progressing in a number of states.

So what's an entrepreneur to do?

Stay tuned for an FAQ roadmap for entreprenuers, coming soon to this blog near you!


*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, 2013.

Business for Good(SM) is a service mark of R. Todd Johnson. 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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