Benefit Corporation Articles
I. Introduction to the Benefit Corporation Articles
These Articles of Incorporation are drafted for the formation of a Benefit Corporation for [YOUR COMPANY NAME], a corporation committed to pursuing both social/environmental goals and the financial interests of its shareholders. The company, operating under these principles, will take actionable steps to create a positive impact on society and the environment, alongside maintaining a sustainable business model.
II. Corporate Name and Registered Office
The name of the corporation shall be [YOUR COMPANY NAME]. The corporation's principal office is located at [YOUR COMPANY ADDRESS], and it will operate in accordance with the laws governing Benefit Corporations in the State of New York.
III. Purpose of the Corporation
The purpose of [YOUR COMPANY NAME] is to operate as a Benefit Corporation and create a positive impact in the following areas:
Environmental sustainability: The corporation aims to reduce its carbon footprint, promote the use of renewable resources, and encourage eco-friendly practices.
Social responsibility: The corporation will focus on addressing community issues, enhancing education, and promoting diversity and inclusion.
Economic impact: Ensuring that the business also remains profitable, growing, and providing returns for its shareholders.
IV. Board of Directors and Governance
The Board of Directors for [YOUR COMPANY NAME] will consist of no fewer than three (3) individuals, appointed and governed in a way that includes consideration for the corporation’s public-benefit goals. The Board shall:
Integrate social and environmental factors into their decision-making process.
Ensure that the goals of creating public benefits align with the corporation's ongoing operations.
Annually evaluate the corporation's performance in fulfilling its public-benefit obligations.
V. Shareholder Rights and Reporting
The corporation will provide annual reports to its shareholders, which will include an evaluation of the corporation’s social, environmental, and financial performance. These reports will include:
The first report shall be issued by January 15, 2051, with subsequent reports delivered annually on the same date.
VI. Accountability and Transparency
To ensure that [YOUR COMPANY NAME] is held accountable for meeting its public-benefit commitments, the corporation shall:
Publish an annual benefit report, available to all stakeholders, including employees, customers, and the public.
Use independent third-party evaluators to assess its impact on society and the environment.
Be open to audits and reviews conducted by relevant regulatory bodies.
VII. Amending the Articles of Incorporation
The Articles of Incorporation may be amended by a vote of the majority of shareholders or the Board of Directors. Amendments that affect the public-benefit purpose of the corporation must also be approved by at least two-thirds of the voting shareholders. All amendments must comply with state laws governing Benefit Corporations.
The date of the first amendment, if any, shall be noted as February 12, 2052, or another designated date.
VIII. Conclusion
The formation of [YOUR COMPANY NAME] as a Benefit Corporation establishes a legally-binding commitment to pursuing both financial success and positive social/environmental impact. Through this framework, the corporation aims to demonstrate that business practices and profit generation can coexist with meaningful contributions to society and the environment.
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