January 25, 2012

Bill Clark Quoted on Benefit Corporation Legislation by Wall Street Journal

Philadelphia partner Bill Clark was quoted in the Wall Street Journal in an article titled, “With New Law, Profits Take a Back Seat.”

The article notes that “hundreds of existing businesses plan to incorporate as 'benefit corporations' in coming months as lawmakers in seven states passed legislation to create a new type of corporation — one required to perform social good as it works to make a profit."

The new corporate form allows a company's board of directors to consider social or environment objectives ahead of profits and is intended to shield the board from investor lawsuits.

Bill, partner in the Corporate & Securities Practice Group, drafted the model benefit corporation legislation on which the state statutes are based. He explained the legal structure "tells directors that it's their duty to consider other interests, rather than say they 'may' consider them.”

To read the entire article, click here.

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