Delaware has always prided itself on being a leader in corporate law, and Governor Jack Markell says the creation of public benefit corporations is the next step in that leadership.
Gov. Markell signed the legislation into law to create socially-conscious corporations. “We’ve all heard about corporations wanting to ‘do well’ while also ‘doing good.’ With this new law, Delaware corporations will now have the ability to build those dual purposes into their governing documents,” said Markell.
Often referred to as the nation’s “corporate capital,” Delaware is the legal home for more than one million legal entities, including a sizeable chunk of the Fortune 500. The new law will allow for a new type of corporation to be formed in the state. Under the law, the leaders of a Delaware public benefit corporation would be required to balance the interests of stockholders with the best interests of those affected by the corporation.
State leaders expect the new law to accelerate growth of investment for those who want to both make money and make a difference in their community.
Corporations will be able to form, convert or merge into a public benefit corporation beginning Aug. 1.