A Benefit Corporation is owned by its shareholders, who can be individuals or entities such as corporations, trusts, or limited liability companies[8]. Shareholders invest in the company and own stock, similar to a traditional corporation, and can be traditional equity investors, employees, or other stakeholders committed to the company’s social and environmental mission[2].
Ownership in a Benefit Corporation is structured the same way as any general corporation under applicable state law. This means:
- Shareholders (individuals or business entities) own the company via stock or shares that can be bought, sold, or transferred.
- There can be different classes of stock, just like in traditional corporations, allowing for variations in voting rights or dividends among different groups of shareholders[2].
- It’s possible for a single person or entity to own 100% of a Benefit Corporation, although many have multiple shareholders[8].
- Shareholders elect the Board of Directors, who then appoint officers to run day-to-day operations[4].
Unlike non-profits, Benefit Corporations are for-profit businesses with a legal obligation to consider their impact on society and the environment as part of their mission, but their ownership and profit structure is fundamentally the same as traditional corporations[4]. This means shareholders ultimately control the company through their voting power and financial stake.
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