Thursday, December 06, 2012
New Corporate Entity: Benefit Corporations
Massachusetts companies now have a new way to demonstrate their commitment to social responsibility.
As reported by masslive.com a law signed by Democratic Massachusetts Gov. Deval Patrick in August allows for the creation of a new type of corporate entity: a benefit corporation. Corporations voluntarily apply for the designation and are then required to consider the public good – factors such as environmental sustainability and community benefit – in their corporate decisions.
MGL c.156E (as added by St.2012, c.238, s.52) went into effect Dec. 1, and by Monday afternoon seven corporations had already registered, according to the Secretary of State’s office. At least three more companies have said they expect to register in the coming months. Massachusetts was the 11th state to allow benefit corporations.
For more information, see our Mass. Law About Corporations: Benefit Corporations.
