New Hybrid Business Entities Combine Businesses, Social Missions

more+
less-

A social entrepreneur has a mission: to launch a successful business, but also to combine profitability with a broader societal purpose. Whether that purpose is environmental sustainability or fair trade, it may not always be compatibility with maximizing profits.

That's where boards of traditional business corporations face a dilemma.Sell the company to the highest bidder, or to one that will carry out the company's social mission? Corporate boards generally have a duty to maximize shareholder value in approving a sale or merger. That may mean an obligation to opt for money over mission, or face legal action.

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.

© Davis Wright Tremaine 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...
×
×