EIRL Legal Requirement

B Lab has yet to determine the B Corp Legal Framework for Certified B Corps with this structure. At this time, companies are not required to change their company’s constitution or other documents as a condition of B Corp Certification. However, once the Legal Framework has been established, Certified B Corporations will be required to adopt the requirement to maintain their B Corp Certification. 

Upon Certification, B Corporations are required to sign a B Corp Agreement, as per the following:

  1. to the extent permissible under the law, to consider the impact of its decisions not only on shareholders, but also on its employees, customers, suppliers, the community, and the environment;

  2. to use reasonable endeavors to support B Lab’s efforts to determine an effective legal mechanism to promote directors' consideration of the matters in item 1;

  3. in the event that such a legal mechanism is established, take such steps as are necessary to avail itself of such mechanism; and

  4.  in the event of a change of control of it, including a public offering, it will recertify within 90 days of the effective date of the change of control. B Lab has not yet received advice on the ability of companies to change their constitution as part of the certification. Advice may determine that companies can adopt a commitment to consider stakeholders under the region's law or that a wider legislative amendment is required to clarify the duties of, and provide greater comfort to, directors of B Corps in the region.

B Labs Logo - Home Link

Sign up to our Insights newsletter, a monthly digest of the latest news on economic systems change from B Lab Global.

We take the security of your data seriously, read our privacy policy for further information. For newsletter communications relating to your local region, please visit Global Partner sites to subscribe.

Copyright © 2024 B Lab. All rights reserved.