Public Benefit Corporation
Introducing a New Type of Delaware Entity - Public Benefits Corporation
What is a Public Benefit Corporation?
As of the year 2015, the Delaware Division of Corporations has added a new type of corporation titled the "Public Benefit Corporation" for filing as an entity.
According to Delaware State Law § 361 Law, The "Public Benefit" Corporation is applicable to public benefit corporations.
(a) A "Public Benefit Corporation" is a "for-profit corporation" organized under and subject to the requirements of Delaware state law. It is intended to produce a public benefit or public benefits. It must operate in a responsible and sustainable manner within the laws of Delaware.
Included in the Certificate of Incorporation a statement must be made which indicates that a public benefit corporation shall be managed in a manner that balances the stockholders' pecuniary interests, the best interests of those materially affected by the corporation's conduct, and the public benefit or public benefits.
The Certificate of Incorporation for a Public Benefit Corporation will Include and:
Identify within its statement of business or purpose pursuant to § 102(a)(3) of this title 1 or more specific public benefits to be promoted by the corporation; and
State within its heading that it is a public benefit corporation which means a positive effect (or reduction of negative effects) on one or more categories of persons, entities, communities or interests (other than stockholders in their capacities as stockholders) including, but not limited to, effects of an artistic, charitable, cultural, economic, educational, environmental, literary, medical, religious, scientific or technological nature.
The title should include PBC or P.B.C. to identify the entity as a Public Benefits corporation.
For more information with reference to this new entity either email us at firstname.lastname@example.org or call our office for a free consultation at 800-219-9359.