No public benefit corporations currently exist. different terminology, so that corporations using the Delaware version are called “public benefit corporations,” and sometimes referred to as “PBCs.” In this book, I will try to use the term “PBC” when referring specifically to Delaware entities, and “benefit corporations… A public benefit corporation is a corporation created specifically to benefit the public in some way. Benefit corporations must consider how their selections affect both shareholders and stakeholders. Are Benefit Corporations Hybrid Nonprofits? A few things: for instance, in Delaware, to become a Public Benefit Corporation, an already existing C or S Corp must: Add “Public Benefit Corporation” “PBC” or “P.B.C” to its name Identify one or more specific public benefits in its Certificate of Incorporation approved by both the board of directors and stockholders of the corporation Was this document helpful? What Is Public Benefit Corporation Colorado? Benefit corporation examples include many well-known corporations, such as Kickstarter, Patagonia, King Arthur Flour, and Method. This ensures that administrators can't focus on their individual interests over the shareholders’ interests. A PBC is a for-profit institution that provides some sort of benefit to the environment or public. In 2014, Florida, for instance, created both social purpose corporations and benefit corporations. The benefit corporation category was implemented as a way to protect company missions when going public. A benefit corporation preserves a company's mission in the following ways: Benefit corporations not only have the goal of profit maximization, but they also work to benefit the public in both general and specific ways. However, there are there are thirty-four different categories. Things like voting on company transactions like mergers or amendments and electing directors fall to them. Public benefit corporations generally fall under the 501c3 status because of the charitable purpose behind the nonprofit. Many entrepreneurs treat the decision to become a PBC and a Certified … Patagonia, Turnstile Tours, American Prison Data Systems, Gilded Rogue Enterprises, Evox Television, and Urbane & Gallant are some examples of benefit corporations that subsequently became Certified B Corporations because they felt the certification had additional value. In December, Italy passed benefit corporation laws, making it the second country, after the U.S., to pass this type of legislation. Their “… values reflect those of a business started by a band of climbers and surfers, and the minimalist style they promoted.”This affiliated group converted to California benefit corporation status on January 3, 2012 – the first day it was legally possible to do so. They often include churches, nondenominational ministries, interdenominational organizations, synagogues, temples, and other religious nonprofits that have a primary purpose of studying or advancing religion. If you need help with your public benefit corporation, you can post your legal need on UpCounsel’s marketplace. Such an entity is administered like any other company type, it's merely another company choice, and thus, there is no cost to the state. 2. Traditional C Corporation law does not specify the definition of "best interest of the corporation" which has led to pr 3.) A public benefit nonprofit cannot participate in political campaigns or donate money or benefit any candidate running for political office. A public benefit corporation created by a government, also known as a statutory corporation or government owned corporations, generally provide free or subsidized services or benefits for the public. 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