The signatories to the Business Roundtable’s Statement on the Purpose of a Corporation committed to lead their companies “for the benefit of all stakeholders-customer, employees, suppliers, communities and shareholders”.

A Delaware public benefit corporation may be structured to meet such goals.

If the proposed legislation approved this week by the Delaware State Bar Association Section of Corporate Law is adopted by the Delaware legislature, the purported obstacles to converting to a public benefit corporation will be eliminated.

Specifically, the vote to convert a conventional corporation to a public benefit corporation would be reduced from a two-thirds vote to a majority of outstanding shares, and appraisal rights will be eliminated in connection with a conversion by amendment to the certificate of incorporation (appraisal rights will remain available in a merger on the same basis as with conventional corporate mergers).

Should you have any questions, please do not hesitate to contact me.