California Creates “Benefit Corporations” and “Flexible Purpose Corporations”
October 13, 2011
Legislation creating legal frameworks for “benefit corporations” (AB 361) and “flexible purpose corporations” (S201) is now law. See the bill texts for more details regarding these new hybrid entities that combine the ability to return profits to investors with an overriding public benefiting purpose. For more information about benefit corporations, see the B Corp website (noting that several states in addition to California have enacted benefit corporation legislation and others are considering it), and for information about flexible purpose corporations see the explanation on the CharityLawyer blog.
Hattip: Nonprofit Law Blog.
LHM
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