Traditional for-profit and nonprofit corporate forms do not provide the appropriate framework for an organization pursuing both profits and social responsibility. In response, state legislatures have begun to take initiative by offering new business forms to accommodate for an increased demand in social responsibility. These hybrid forms seek to offer an organization the optimal platform by which to meet their dynamic goals. This Note will analyze the recently popular hybrid form of a benefit corporation. Further, this Note will dissect the Model Benefit Corporation Legislation and explain how benefit corporations provide a solution to the theory of shareholder wealth maximization. In closing, this Note will expose a deficiency in the model legislation and offer a solution to this deficiency. In particular, this Note will argue that the current enforceability and accountability provisions do not provide a sufficient assurance that all stakeholders’ interests will be adequately protected.
Thomas J. White III,
Benefit Corporations: Increased Oversight Through Creation Of The Benefit Corporation Commission,
Available at: http://scholarship.law.nd.edu/jleg/vol41/iss2/6