The Banking, Commerce and Insurance Committee heard testimony Feb. 3 on a bill that would allow a business corporation to become a benefit corporation.<\/p>\n
Lincoln Sen. Danielle Conrad introduced LB751 to allow a business corporation to become a benefit corporation by a two-thirds vote of each class of shareholders. Conrad said the bill would benefit socially conscious businesses.<\/p>\n
\u201cThis will help Nebraska compete by allowing corporations to elect to become benefit corporations if they so choose,\u201d Conrad said. \u201cIt\u2019s a way for entrepreneurs to signal to shareholders that, in addition to profit, they also have a social benefit that they are seeking to produce.\u201d<\/p>\n
The bill defines a benefit corporation as a domestic business corporation which would create a general public benefit, including:
\n\u2022 providing low-income or underserved individuals with benefit products or services;
\n\u2022 promoting economic opportunity for individuals in communities beyond creation of jobs in normal courses of business;
\n\u2022 protecting or restoring the environment;
\n\u2022 improving public health;
\n\u2022 promoting the arts, sciences or advancement of knowledge;
\n\u2022 increasing the flow of capital to entities with a purpose to benefit society or the environment; and
\n\u2022 conferring any other particular benefit on society or the environment.<\/p>\n
Under LB751, the benefit director would be required to submit an annual report to shareholders explaining whether or not the corporation\u2019s actions were in accordance with its stated public benefit purposes. The annual report also would detail the impact of its actions on shareholders, employees, customers, the community and the ability of the corporation to achieve its general public benefit purpose.<\/p>\n
William Clark of Drinker Biddle and Reath, testified in support of the bill. He said the concept of benefit corporations is not a new idea.<\/p>\n
\u201cThis is designed for people who want to pursue what we call the triple bottom line: profits, people and the planet,\u201d Clark said. \u201cThese are businesses that want to conduct business for profit, but in a way that has a positive impact on people.\u201d<\/p>\n
Michael Wallace of Omaha also supported the bill, saying, \u201cThe intersection between business and the common good should not be seen as mutually exclusive.\u201d<\/p>\n
No one testified in opposition to the bill and the committee took no immediate action on it.<\/p>\n","protected":false},"excerpt":{"rendered":"
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