Now that Governor Christine Gregiore has signed SHB 2239 (the “Legislation”),[1] Washington state has a for-profit business entity to offer the entrepreneur looking to make a social impact: the Social Purpose Corporation (SPC).   I previewed the Legislation here, but now it’s time to provide a more in-depth introduction to the SPC. The SPC is Washington’s unique “hybrid entity.” We refer to it as a “hybrid” because the legal structure permits a return for shareholders similar to a for-profit corporation and allows management to adhere to a social mission similar to a nonprofit corporation.  Think of the SPC as Washington’s......


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April 2, 2012

Benefit Enforcement Proceedings for the Benefit Corporation– What are they and How will they work?

As more and more states enact legislation authorizing Benefit Corporations, more questions will be asked about the form and function of these hybrid entities.  Nowhere are these questions more evident...