California Benefit Corporations

What makes a benefit corporation different?

Purpose: creates a material positive impact on society and the environment, taken as a whole

Accountability: obligates itself to consider not just profits but also environmental and social factors in its actions and operations

Transparency: reports annually on its operations including environmental and social performance using independent, third-party standards

How can my company convert to a California benefit corporation?

Corporations: Existing corporations formed in California or any other state may convert upon approval of at least 2/3 of shareholders.

Other Business Entities: Existing limited liability companies, limited partnerships and general partnerships formed in California or any other state may convert upon approval of at least 2/3 of the holders of every interest in the entity entitled to receive a distribution from the entity.

When can I form or convert to a California benefit corporation?

Existing corporations formed in California or any other state may convert upon approval of at least 2/3 of shareholders. Existing limited liability companies, limited partnerships and general partnerships formed in California or any other state may convert upon approval of at least 2/3 of the holders of every interest in the entity entitled to receive a distribution from the entity.

The California Secretary of State began allowing formation of California benefit corporations on January 3, 2012.

Publications

Brochures

Primary Contact

Jonathan S. Storper Partner
San Francisco
415-995-5040 Direct Phone
415-995-3466 Fax

jstorper@hansonbridgett.com

Related Practices

Sustainable Business and Impact Investing

Corporate

Attorneys

Teresa V. Pahl

Scott C. Smith

Jonathan S. Storper