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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