For Profit Corporations with a Social Mission - Pennsylvania's New Benefit Corporation Act

A new Pennsylvania Benefit Corporation Act (the “Act”) becomes effective on January 23, 2013. The Act authorizes a new type of corporation known as a Benefit Corporation. The Act is intended to provide entrepreneurs and investors who want to build and invest in businesses that operate in a socially and environmentally responsible manner with a vehicle that meets these objectives. While Benefit Corporations operate on a for-profit basis and pay income taxes, they are unique in that their directors must take into account social issues (e.g., employees, community, and environment) along with the bottom line when making corporate decisions. Pennsylvania is one of 12 states that has adopted similar legislation.

A Corporation with a Social Mission -

Benefit Corporations are based upon traditional Pennsylvania business corporations. However, Benefit Corporations impose three additional unique requirements with respect to purpose, accountability and transparency...

Please see full article below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

Published In:

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Schnader Harrison Segal & Lewis LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.
×
Loading...
×