Senators gave first-round approval March 12 to a bill that would allow a business corporation to become a benefit corporation.<\/p>\n
Lincoln Sen. Danielle Conrad introduced LB751, which would allow a business corporation to become a benefit corporation by a two-thirds vote of each class of shareholders. Conrad said the bill would offer social entrepreneurs an additional tool without giving preferential treatment.<\/p>\n
\u201cElecting to become a benefit corporation won\u2019t be a good fit for all businesses,\u201d she said, \u201cbut for businesses who seek to attract socially conscious investors and consumers, it will be.\u201d<\/p>\n
The bill defines a benefit corporation as a domestic business corporation that 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
Columbus Sen. Paul Schumacher supported the bill, saying it would provide a valuable marketing tool for no cost to the taxpayers.<\/p>\n
\u201cThis bill makes that corporate organization \u2014 at no cost to anybody \u2014 available to entrepreneurs who agree with the notion that socially conscious corporations \u2026 are a way to be highly profitable,\u201d he said. \u201cIt would marry the notion of capitalistic greed and entrepreneurship with the notion of social consciousness.\u201d<\/p>\n
Senators advanced the bill on a 33-0 vote.<\/p>\n","protected":false},"excerpt":{"rendered":"
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