Understanding Benefit Corporations in New York
A New Law Promoting Corporate Pursuit of the Public Good A new business entity option became available to entrepreneurs and existing business leaders with the late 2011 signing of New York’s Benefit Corporation Law. Whereas corporations have been traditionally bound to operate in the financial interest of shareholders, a benefit corporation or “B corp,” by definition and structure, forms a mission and makes decisions that also account for the interests of employees, suppliers, customers, community, society and the environment. Essentially, Article 17 of New York Business Corporation Law has created a corporate structure for enterprises that wish to manage operations in a way that balances public benefits with profitability. Traditionally, corporate leaders could face legal action by shareholders for making decisions that did not maximize profits and shareholder returns. Benefit corporations are lawfully able to set and pursue other priorities.
Legally Sound Analysis, Planning, Incorporation and Execution
Applying many decades of experience in business formation at all levels and across a vast range of industries, attorneys at our firm can assist you with all aspects of business planning and the establishment of a benefit corporation, including: Drafting or amendment of Articles of Incorporation to establish a New York benefit corporation, including counsel on shareholder voting Definition of general and specific public benefits aligned with your business purpose and philosophy, often including promotion of economic opportunity, improvement of public health and the environment, and advancement of knowledge and culture Coordination of efforts with an independent third-party agency required to evaluate performance, transparency and accountability Development and issuance of Annual Benefit Reports addressing the B corp’s performance against its stated mission and third-party standards for public benefit Benefit corporations are not only permitted, but required, to make having a material positive impact on society a key component of their missions and operations. Our legal and professional team has the extensive background in public service, environmental and social action and business law matters to help you evaluate whether establishment of a B corp is right for you, and to support your effort comprehensively.
Contact Our Firm to Discuss Your Business Goals and Options
To speak with a lawyer about benefit corporations, contact us at the Mid-Hudson Valley law firm of Jacobowitz and Gubits, LLP. Call 845-764-9656 or 866-303-9595 to schedule a consultation at a time that works for you.