The value of meeting the legal requirement for B Corp certification is that it bakes sustainability into the DNA of your company as it grows, brings in outside capital, or plans succession, ensuring that your mission can better survive new management, new investors, or even new ownership.
The benefits of the legal requirement:
1. Give legal protection to directors and officers to consider the interests of all stakeholders, not just shareholders, when making decisions
2. Create additional rights for shareholders to hold directors and officers accountable to consider these interests
3. Limit these expanded rights to shareholders exclusively
What's the Process?
Determine whether you will need to amend your governing documents or adopt benefit corporation status to meet the legal requirement for certification for your state of incorporation and corporate structure.Legal Roadmap
If necessary given the results of the above, engage key board members, legal counsel, and investors about the usefulness and implications of adopting these legal changes for raising money, selling your business and directors' liability.FAQ for Directors & Investors
Obtain board approval of your planned amendment
Obtain shareholder approval of your board-approved amendment
If a corporation, file your amended articles with your Secretary of State within 1 year