Former Glom guest Bill Callison has a new article on benefit corporations up on SSRN, titled "Putting New Sheets on a Procrustean Bed: How Benefit Corporations Address Fiduciary Duties, the Dangers Created and Suggestions for Change." Given my prior scholarship on nonprofit entity structure, I've been following this new form with interest. Glom readers may also remember Haskell Murray blogged about it this May.
I look forward to reading Bill's piece when my summer calms down a little. Here's the abstract:
This Article considers the present structure of benefit corporations, as enacted by several states, and finds it wanting on several levels -- the concept of "general public benefit" is too limited and prevents shareholders from choosing the ends to be promoted by their corporation; there is a negative inference concerning the appropriate ends of corporations that are not benefit corporations; there are insufficient constraints on directors' fiduciary duties; and there are significant enforcement issues. The paper concludes by suggesting alternative structures to mitigate these problems.
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