Keeping the "Benefit" in Benefit Corporations: How and Why New York State Should Continue to Foster and Develop Benefit Corporation Legislation

Authors

Frank Tantone

Abstract

(Excerpt)

This paper proposes that New York State should continue to facilitate the growth of benefit corporations through statutory amendments to its business corporation laws and recognition of important policy justifications behind these novel business models. In turn, these corporations will yield positive results, both economically and socially, in New York’s unique socio-economic landscape. Specifically, the inclusion of educational and cultural social good as acceptable pursuits of benefit corporations will result in more corporations tackling these issues.

This paper also examines the relevant policy justifications behind the continued support of benefit corporations, by way of the New York Business Corporation Laws (“NYBCL”). Because of the recent legislation, little scholarship has been written on benefit corporations, and their social and economic effects on New York specifically. The continued support of benefit corporations in New York will lead to economic and social prosperity, as well as increased encouragement of small businesses and start-up companies to become benefit corporations.