public benefit corporation delaware
Public benefit corporation legislation was enacted in Delaware in 2013. A Delaware Public Benefit Corporation (PBC), also known as a social purpose corporation, is a corporation designed to consider social purposes and moral and ethical considerations in determining the path of the business. Dear Sir or Madam: Enclosed please find a form for a Certificate of corporation In for a Public Benefit Corporation to be filed in accordance with Sections 102 and 362of the General Corporation Law of the State of Delaware. The PBC Guidebook is the first comprehensive treatment of Delawareâs new provisions. If youâre an entrepreneur considering incorporating as or converting into a Delaware Public Benefit Corporation (), the following five-part test may be helpful in determining whether it is the right choice of entity.. 1. This subchapter applies to all public benefit corporations, as defined in § 362 of this title. The Delaware Public Benefit Corporation Provisions. As defined under the statute, a âpublic benefit corporationâ is a for-profit corporation that is intended to produce a public benefit or public benefits and to operate in a responsible and sustainable manner. It is a for-profit business that has a stated âpublic interestâ purpose set out in its certificate of incorporation to allow for a purpose beyond maximizing profit for stockholders. Learn more about public benefit corporations in our articles: Benefit Report. The Model Act requires a benefit corporation to have as a purpose the creation of a general public benefit. the creation of Delaware public benefit corporations in 2013, and since then, hundreds of PBCs have been formed in Delaware. Misconception: Benefit corporations and Certified B Corps are the same thing What must the Benefit Report include? A Public Benefit Corporation (âPBCâ) in Delaware, which some refer to as a B-corporation, is a new type of corporate structure. Delaware Public Benefit Corporation Practice Note By Frederick H. Alexander, Melissa A. DiVincenzo, Eric S. Klinger-Wilensky 11.30.16. Common Misconceptions. (a) A public benefit corporation is a for-profit corporation organized under and subject to the requirements of this chapter that is intended to produce a public benefit or public benefits and to operate in a responsible and sustainable manner. for a Public Benefit Corporation . Specific benefit requirement â Delaware requires a public benefit corporation (PBC) to have as a purpose the promotion of a specific public benefit, which must be set forth in its certificate of incorporation. Public benefit corporation defined; contents of certificate of incorporation. You have a clear social or environmental public benefit purpose. A âpublic benefit corporation,â according to the Delaware General Corporation Law, âis a for-profit corporationâ¦that is intended to produce a public benefitâ¦and to operate in a responsible and sustainable manner. The greater good pursued by a PBC might be related to the environment, society, or the world at large. PBCs have a critical role to play in the twenty-first century economy. § 362. Note that these documents are intended only for US companies incorporating in Delaware as a public benefit corporation. The Certificate of Incorporation of a Delaware Public Benefit Corporation must clearly state that the entity is a public benefit corporation, and it must also list the companyâs benevolent objectives. Important: To generate public benefit corporation documents, select âPublic Benefit Corporationâ when asked to select the type of corporation on the second page. The fee to file the Certificate is $89; the a minimum of View All. At least every two years, a Delaware Public Benefit Corporation must provide its stockholders with a report on the companyâs promotion of the public benefit specified in its charter and the interests of those affected by the companyâs actions.