Further to our recent report: "Corporate Purpose: Director Duties," Mayer Brown's "Primer on Public Benefit-Focused Corporate Models in California and Beyond" explains what benefit corporations are and provides a high level overview of the designation, corporate structure, corporate purpose requirements, director duties, ongoing compliance and reporting requirements, and other considerations regarding this alternative form of for-profit corporate entity with reference (for illustrative purposes) to California and Delaware laws, and as compared to a conventional corporation. The memo also addresses considerations relevant to B Lab and other third-party certifications, which may be sought by both benefit and conventional companies.
See also this Richards Layton & Finger memo explaining some proposed amendments to the DGCL that would ease the conversion to or from a public benefit corporation and additional information & resources on our Benefit Corporations and Director Duties & Liabilities pages. This post first appeared in the weekly Society Alert!