Lol this is pretty freaking funny ššš
Guess when you have shareholders and need to raise money its easier to not be a benefit corp than it is to be one š
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Lol this is pretty freaking funny ššš
Guess when you have shareholders and need to raise money its easier to not be a benefit corp than it is to be one š
It was a Nevada PBC, which is bullshit. PBC status can be beneficial, but the only PBC law worth a damn is Delaware's... and unfortunately Delaware is pretty shit otherwise right now for corporate formation. Nevada (and all other states with a PBC law, IIRC) uses the Vermont PBC law, which defines "public benefit" as essentially purely anti global-warming. Delaware's PBC law allows the corporation to define the public benefit, as long as it's reasonably a public benefit, not a private one. (So a Delaware PBC could select, for instance, supporting the Second Amendment as the public benefit, and that would be OK).
So can you explain the issue with a Nevada PBC please?
NRSā78B.040āāāGeneral public benefitā defined.āāāGeneral public benefitā means a material positive impact on society and the environment, taken as a whole, as assessed against a third-party standard, from the business and operations of a benefit corporation.
Delaware doesnāt have the āgeneral public benefitā requirement, and also doesnāt require a third party standard.
While both Nevada and Delaware allow a specific public benefit, itās the general benefit plus the third party standard that essentially āreads inā and enforces ESG and woke ideology.
In Delaware, you could make your PBC support, or instance, a church or local community. A Delaware PBC could also make the public benefit be support of pro-life or pro-coal organizations. In Nevada that is technically possible, but not if it conflicts with the general public benefit and/or the standards required by the third party (which would kill the above examples).
I did significant research on this a few years ago, when I established a Delaware PBC (which I didnāt use) over a Nevada PBC to take over a Nevada company I used to own. I wanted the PBC to support the local community & tourism to it, which is totally fine in a DE PBC, but not the NV version.