Last year, the Senator Mark DeSaulnier introduced SB 1463 to provide for an entirely new form of entity – the flexible purpose corporation. SB 1463 did not move forward and died at the end of the 2009-2010 legislative biennium. With the deadline for new bill introductions quickly approaching (February 18), Senator DeSaulnier has introduced a new bill SB 201 to authorize and regulate the formation and operation flexible purpose corporations.

A flexible purpose corporation is a business corporation that is required to include one or more of the following special purposes in its articles of incorporation...