The article United States: California’s New Entities: Benefit Corporations And Flexible Purpose Corporations discusses benefit corporations and flexible purpose corporations, two subtypes of traditional business corporations that can be organized under the California Corporations Code (as of 2012). These allow the directors of a corporation to pursue interests other than solely those economic interests of its shareholders; for instance, directors can make decisions to address social objectives (e.g., environmental health).
\nThe author notes that to be recognized as one of these subtypes, a corporation must include a specific statement in its Articles of Incorporation, identifying that corporation as either a benefits corporation or a flexible purpose corporation.
\nCertain articles within this post were linked and referenced with the permission of Mondaq.com, through our exciting content collaboration with them. To access Mondaq’s large database of articles written by top law firm lawyers from around the world, you must leave our site and create a free account on theirs.
","frontmatter":{"title":"What are Benefit Corporations and Flexible Purpose Corporations, and how are they identified?","date":"February 29, 2012","description":"This article posted on our partner site Mondaq.com discusses benefit corporations and flexible purpose corporations, two subtypes of traditional business corporations that can be organized under the the California Corporations Code (as of 2012).","author":{"id":"alina@clausehound.com","first":"Alina","last":null,"bio":null,"image":null},"tags":["Jurisdiction Shopping","Mondaq","Learn","USA","USA(CA)"]}}},"pageContext":{"slug":"/blog-bite-what-are-benefit-corporations-and-flexible-purpose-corporations-and-how-are-they-identified/","previous":{"fields":{"slug":"/blog-bite-are-parties-to-a-joint-venture-agreement-have-obliged-to-act-with-good-faith-to-each-other/"},"frontmatter":{"title":"Blog Bite: Are parties to a joint venture agreement have obliged to act with good faith to each other?","tags":["Nature of Relationship","Joint Venture Agreement","Mondaq","Learn","UK"],"author":{"id":"alina@clausehound.com","first":"Alina","last":null}}},"next":{"fields":{"slug":"/blog-bite-what-is-the-scope-of-an-entire-agreement-clause/"},"frontmatter":{"title":"Blog Bite: What is the scope of an entire agreement clause?","tags":["Entire Agreement","Mondaq","Learn","UK"],"author":{"id":"alina@clausehound.com","first":"Alina","last":null}}}}}}