Benefit Corporations
California Governor Brown Signs Benefit Corporation Into Law and Paves the Way for Environmental, Social, and Financially Successful Businesses
Governor Jerry Brown signed AB 361 into law on Monday which creates legal protection for businesses interested in pursuing a triple bottom line for success: including people, planet, and profit in their decision making processes.
According to B Corp organization, the California Benefit Corp. legislation is unique, providing the strongest consumer and investor protection through the most rigorous transparency provisions among the states that have so far enacted benefit corporation legislation. California, the largest economy in the U.S. and considered the home of entrepreneurial activity using sustainability as a driver of innovation, becomes the biggest state, and the sixth overall, to pass benefit corporation legislation.
Marin County Assemblymember Jared Huffman who introduced the bill in California stated, “Entrepreneurs, investors and consumers are calling for this type of legislation. They believe this is the start of something transformational. AB 361 rolls out the welcome mat for businesses and investors ready to create high quality jobs in California and make economic and social contributions that will improve the quality of life in communities across to our state for years to come.”
AB 361 goes into effect Jan. 1. Similar Benefit Corporation laws exist in Hawaii, Maryland, New Jersey, Vermont and Virginia. Benefit Corporation legislation is awaiting approval in New York and is moving forward in North Carolina, Pennsylvania and Michigan.
For more information go to:
