Corporate Governance

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Benefit Corporation Legislation: A New Corporate Form for Impact Investors

Current corporate laws do not provide impact investors with the shareholder rights to guard against their earlystage impact investments suffering mission-creep through successive capital raises.

Shareholders of Benefit Corporations possess additional rights to hold the corporation accountable to pursue mission as well as margin. Benefit Corporation legislation has already been passed in three states (Maryland, Vermont, and New Jersey) and is moving forward with broad bipartisan support in eight others (see reverse), including California (AB 361 – Huffman).

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