Benefit Corporations are a new class of corporation that are required by law to create a material positive impact on society and the environment and to meet higher standards of accountability and transparency. P3 Utah was instrumental in bringing this law into Utah.
Representatives of 10 of the 13 benefit corporations registered on May 13 in the Gold Room at the Utah State Capitol building. Photo courtesy of David Schmenk
PRESS RELEASE for May 13 Effective Day Event including remarks by Lt. Governor Spencer Cox and Senator John Valentine with a list of all 13 original Utah benefit corporations
Why should you consider registering one of the Original Utah Benefit Corporations?
S.B. 133 Fact Sheet
Utah State Senate 17 minute video. Just go to http://utahlegislature.granicus.com/MediaPlayer.php?clip_id=16462&meta_id=490605 and wait for the video to start.
Instructions for Registering a Utah Benefit Corporation
P3 Utah Instructions for registration of an original Utah benefit corporation on May 13
Background For Attorneys
Utah CLE presentation on benefit corporations
The Whole Law
S,B. 133 Benefit Corporation Amendments
Much more information about Benefit Corporations
National Benefit Corporation Information Center at B Lab
Overview of Utah’s Benefit Corporation Statute
What it does:
- Creates a new voluntary corporate form that allows businesses to consider other factors in addition to profit, such as the community and the environment.
- Requires owners to report annually on material positive benefits to the community and the environment.
- Requires high shareholder agreement, 2/3 shareholder vote, to adopting the new form or to move away from new form. Includes existing law’s dissenters’ rights for those that do not agree.
- Provides additional needed protection for new impact investment revenue to flow into Utah businesses.
What it doesn’t do:
- No cost to the state, it simply is another optional business form.
- No tax benefits, benefit corporations are either C corps or S corps under the tax law like regular Utah domestic or foreign corporations.
- No government intrusion on how a business should operate, allows businesses to operate in the free market.
- No impact on existing businesses.
Check the blog for an in-depth description.