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Thursday, July 18, 2013

Delaware Public Benefit Corporations are now a reality

This significant addition of socially-conscious corporations add to State’s leading role in corporate law!

Governor Jack Markell has signed the legislation creating Public Benefit Corporations here in Delaware.

Corporations are eligible to form, convert or merge into a public benefit corporation in Delaware beginning August 1, 2013.

Formation of a Public Benefit Corporation

A public benefit corporation (PBC) will be formed in the same manner as any other corporation formed under the Delaware General Corporation Law. However, in order to be a PBC, the corporation’s certificate of incorporation must identify one or more specific public benefits and must have a name that clearly identifies its status as a PBC. Public benefits for which corporations may be formed include, but are not limited to, those of an artistic, charitable, cultural, economic, educational, environmental, literary, medical, religious, scientific or technical nature.

At least once every two years, a public benefit corporation must send its stockholders a statement with respect to its promotion of the public benefit(s) identified in its charter, as well as its promotion of the best interests of those materially affected by the corporation’s conduct.

Interested in taking advantage of the unique legal climate here in Delaware for creating your PBC?

Contact us so we can help!

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Small Business Reading Room

Delaware Public Benefit Corporations are now a reality

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