Delaware Continues it’s leading role in corporate law by enabling Public Benefit Corporations
As if there was ever any doubt, the public benefit corporation legislation we talked about a few months ago has been signed in to law by Governor Markell.
Formation of a Public Benefit Corporation
A public benefit corporation (PBC) will be formed in the same manner as any other corporation formed under the Delaware General Corporation Law. However, in order to be a PBC, the corporation’s certificate of incorporation must identify one or more specific public benefits and must have a name that clearly identifies its status as a PBC. Public benefits for which corporations may be formed include, but are not limited to, those of an artistic, charitable, cultural, economic, educational, environmental, literary, medical, religious, scientific or technical nature.
At least once every two years, a public benefit corporation must send its stockholders a statement with respect to its promotion of the public benefit(s) identified in its charter, as well as its promotion of the best interests of those materially affected by the corporation’s conduct.
Corporations are eligible to form, convert or merge into a public benefit corporation in Delaware beginning August 1, 2013.
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