CA Social Purpose Corporations – Annual Shareholder Report

A California Social Purpose Corporation is formed pursuant to Corporations Code sections 2500 et seq. Social Purpose Corporations are required to provide annual reports to shareholders no later than 120 days after the close of the corporation’s fiscal year.An outline of these requirements is provided below. Detailed requirements for this annual report are found in…

Social Purpose Corporation – May Consider Public Benefit In Addition to Maximizing Profit

Since 2012, California has created two new corporate structures: (1) the social purpose corporation; and (2) the benefit corporation.  Unlike traditional for-profit corporations, these new corporate structures are permitted to consider the public benefit in making corporate decisions. The primary purpose of a for-profit corporation is as stated in the name —  for profit. (See…

For Profit Corporation Means Just That — Maximizing Profits to Shareholders is Essential

Corporate law requires corporations to maximize profits to shareholders.   This absolute requirement may expose corporate leadership (and the corporation itself) to potential litigation if shareholders disagree with decisions made by the corporate leadership, as was shown in the case of  Dodge v. Ford Motor Co., 170 N.W. 668 (Mich. 1919). Henry Ford, and the Board…