The Washington State Senate approves of the “Social Purpose Corporation”
by Peter Smith
March 2, 2012
in Benefit Corporation, Flexible Purpose Corporation, L3C, Mission, Social Purpose Corporation, Uncategorized
Today, the Washington State Senate approved a bill that would establish the Social Purpose Corporation by a vote of 34 to 14 with 1 excused. The bill was passed by the House of Representatives last month, as I wrote about here, and it now only needs approval by Governor Gregoire to become law. Washington is a small step away from authorizing a corporate legal structure that expressly accommodates the needs of a social entrepreneur: a business structure that legally permits officers and directors to act in furtherance of a social purpose, not only in furtherance of profit. Washington would join New York and California as the most recent state in a growing list of states recognizing the need for a new legal structure to accommodate the social entrepreneur.
I can’t fathom any reason why the Governor would veto any part of this bill, but I’m going to wait for her signature before providing any in-depth analysis of the bill’s language. For my initial thoughts on the Social Purpose Corporation language, please go here.
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