Post Content

Chapter 156E of the Massachusetts General Laws became effective on December 1, 2012.  It provides for “benefit corporations,” a unique business or professional corporation whose purpose is not only to serve the interests of the shareholders, but also to “create a material, positive impact on society and the environment.”

The 2015 supplement to Massachusetts Corporation Law & Practice has added a chapter on Benefit Corporations.  The actual incorporation of Benefit Corporations is done under Chapter 156A, the professional corporation statute, or Chapter 156D, the business corporation statue. 156E differs from these sections by requiring Directors to consider societal and environmental factors in making decisions and mandating an annual report describing how a public benefit has been pursued and measuring performance.

Over half the states have passed Benefit Corporations legislation.  B Corp, the nonprofit organization that wrote model legislation for this type of business organization, provides optional B Corp certification and guidance for individual businesses.

For more information, see our Law About Benefit Corporations.

Written By:

Tags: , , ,

Recent Posts

Do Trees Have Standing? posted on Oct 17

Do Trees Have Standing?

From Justice William O. Douglas’ dissent in Sierra Club v Morton, 405 U.S. 727, 741 (1972) : “The critical question of ‘standing’ would be simplified and also put neatly in focus if we fashioned a federal rule that allowed environmental issues to be litigated before federal   …Continue Reading Do Trees Have Standing?

Word(s) of the month – standing posted on Oct 16

Word(s) of the month - standing

Words of law is a regular feature of Massachusetts Law Updates, highlighting a particular word or phrase and its meaning in law. Today’s word is standing. standing n. (1924) A party’s right to make a legal claim or seek judicial enforcement of a duty or right. • To have   …Continue Reading Word(s) of the month – standing

Index to blog post series about codification posted on Sep 27

In order to help navigating in and around our series about codification that was posted during the last two weeks, the following index may help: Word(s) of the month – codification, posted September 16, 2019, from Black’s Law Dictionary, 10th ed., Bryan A. Garner, Editor in Chief,   …Continue Reading Index to blog post series about codification