On May 15, 2013, Governor Hickenlooper signed into law the Public Benefit Corporation Act of Colorado. Though the law does not go into effect until April 2014, Dymond Reagor Colville’s business formation attorneys are prepared to assist you and your anticipated Colorado Public Benefit Corporation in the all important planning stages.
What is a Colorado Benefit Corporation?
Public Benefit Corporations, or “B-Corps“, arose from the sustainable business movement in an effort to accommodate for-profit entities who are socially minded at their core. Benefit Corporations are designed to produce a public benefit and to operate in a responsible and sustainable manner. B-Corps offer broad legal protection to directors and officers, expanded shareholder rights, and require a designated corporate purpose to create a positive impact on society and the environment. In order to become a B-Corp, a for-profit corporation needs to be established and the corporation then elects B-Corp status.
What Types of Causes Can a B-Corp Promote?
Public Benefit, as required by law, includes achieving positive effects(or reducing negative effects) of an:
- scientific, or
- technological nature.
Can I Convert a Corporation Into a B-Corp?
Yes. In order to do so, your corporation must have the approval of 2/3 of the outstanding shares of all classes of stock (voting and non-voting) approve to elect B-Corp status. As a note, non-profit corporations are not allowed to convert into a B-Corp. All other entities should seek the advice of our Denver business law attorneys.
Talk to our Denver Tech Center B-Corporation Attorneys
Successful business planning is rarely done halfway into the journey. An hour of our time today can save you from a legal headache in the future. After-hours appointments are available upon request. All initial consultations are free. Contact DRC by phone at 303-793-3400 or Email the firm to schedule your appointment today.