The Minnesota Public Benefit Corporation Act was signed into law in April 2014 and will go into effect in January of next year. The act allows for a new type of corporate entity, the public benefit corporation (B-Corps), to be incorporated.
Faegre Baker Daniels corporate attorneys Jonathan Nygren and Brandon Mason were quoted in a Minnesota Lawyer article outlining the act and introducing B-Corps. They described the entities as "for profit but socially minded." Public benefit corporations exist between nonprofits and traditional corporations, attempting to balance the interests of stockholders with social interests by having the power to exchange some shareholder profits for investments in the public good.
While the differences between traditional corporations and public benefit corporations are small, Minnesota Lawyer said they contain a marketing advantage for organizations wanting to differentiate themselves to consumers.
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