Governor Quinn signed the Benefit Corporation bill on August 2, 2012 (Public Act 97-0885). The new law does not go into effect, however, until January 1, 2013.
Benefit Corporations, also known as B Corps, are a new type of corporation in Illinois which actively adopt a general public benefit or one or more specific public benefits as a corporate goal (or a combination of a general and specific goals). Legally speaking, this allows B Corps to pursue purposes other than maximizing profits without fear of a shareholder derivative lawsuit and, u nlike L3C s, a B Corp still make significant profits. From a public relations standpoint, it allows a business to attract like-minded consumers.
The statute places ongoing reporting responsibilities on Benefit Corporations which are undertaken by a Benefit Director and a Benefit Officer. The statue also creates a “benefit enforcement proceeding” as a means of making sure the general or specific goals of the B Corp are met.
If you have questions about B Corps, wish to create a B Corp, or wish to conert your existing business to a B Corp, contact us at 773-609-5320, firstname.lastname@example.org, or through our web contact form.
Disclaimer: This article cannot, and does not, create any attorney/client or consultant/client relationship.