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Submitted by UCS on July 13, 2020
On June 25th, the Georgia Legislature passed HB230 providing for the creation of Benefit Corporations. To review a copy of the legislation click here.
What is a Benefit Corporation?
A benefit corporation is a traditional corporation with modified obligations committing it to higher standards of purpose, accountability and transparency:
Purpose: Benefit corporations commit to creating public benefit and sustainable value in addition to generating profit. This sustainability is an integral part of their value proposition.
Accountability: Benefit corporations are committed to considering the company’s impact on society and the environment in order to create long-term sustainable value for all stakeholders.
Transparency: Benefit corporations are required to report, in most states annually and using a third party standard, showing their progress towards achieving social and environmental impact to their shareholders and in most cases the wider public.
Is a Benefit Corporation a for-profit company?
Yes. Benefit corporations are for-profit companies that want to consider additional stakeholders, morals or missions in addition to making a profit for their shareholders.
Which states currently recognize Benefit Corporation legislation?
*New York does not allow registration of a foreign Benefit Corporation.
For more information please contact a Client Service Representative at (800)899-8649 or info@unitedcorporate.com.
