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.

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