European Business Law Review

Volume 27 (2016)

Volume 27 (2016) / Issue 3

Alex Fomcenco, 'Evolution of Corporate Essence: Public Benefit Corporation' (2016) 27 European Business Law Review, Issue 3, pp. 377–391

Abstract

This article points out a shift in the “human corporate self-apprehension” where profit maximization is not the sole reason for incorporation or investment. Public Benefit Corporation is a new type of a corporate vehicle. Its incorporation and functioning is regulated by the same legislation that applies to a traditional limited liability company. Its main distinctive attributes are corporate purpose, accountability of its management, and transparency requirements. Although, a Public Benefit Corporation does not impose any revolutionary amendments to the way the traditional corporations are, it offers a legal framework where public benefit is more important than profits. As a corporate entity, Public Benefit Corporation already exists in numerous jurisdictions and those jurisdictions that do not yet facilitate creation of this corporate form should most definitely consider it.

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ISSN: 0959-6941
ID: EULR2016017