Maryland has become the first state to create a new kind of company somehat similar to Utah's L3c - a "Benefit Corporation"
This new class of corporations are required by state law to create benefit for society as well as shareholders. This includes "material positive impact on society; consider how decisions affect employees, community and the environment; and publicly report their social and environmental performance using established third-party standards."
According to an article on the legislation, the new law "addresses a long time concern among entrepreneurs who need to raise growth capital but fear losing control of the social or environmental mission of their business. The law gives these business developers the right to hold directors accountable for failure to create a material positive impact on society or to consider the impact of decisions on employees, community, and the environment."
Any takers on running the legislation here?
