Oregon became only the second state to authorize benefit LLCs. Over a dozen states have authorized benefit corporations, but until now only Maryland had authorized benefit LLCs. THE NEED AND RATIONALE FOR THE BENEFIT CORPORATION: A benefit corporation has to create a material positive impact on society and the environment. The directors’ duties require consideration of the effects of their business on society and the environment. Benefit corporations are a response to the corporate law principle that corporations exist to maximize shareholder profits, and that therefore corporate directors have a fiduciary duty to be guided by that principle and not by broader, societal concerns.
Posted on: Fri, 14 Jun 2013 16:40:38 +0000
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