Public Benefit Corporation Act Amendments – 2022

Abstract

Colorado’s Public Benefit Corporation Act (“CPBCA”) has been in effect since 2013 and through December 31, 2021, almost 2,000 public benefit corporations (“PBCs”) have been formed. A PBC must identify a public benefit purpose in its articles of incorporation, and the directors, in managing the business and affairs of the PBC, must balance the pecuniary interests of the shareholders, the interests of those materially affected by the corporation’s conduct, and the public benefits identified in the articles of incorporation. A PBC is one of several tools available for a social entrepreneur to carry on business in a manner that is socially or environmentally responsible, and in accordance with good corporate governance (“ESG”).

Thus the tools in the social entrepreneur’s toolkit have expanded. Herrick Lidstone discusses the 2022 amendments and other ESG tools available in the linked article.

Keywords: public benefit corporation, benefit corporations, corporate social responsibility