In 2011, Governor Jerry Brown signed AB 361, California's Benefit Corporation legislation.
Wendel Rosen partner Donald Simon co-chaired the effort to draft, champion and pass the Benefit Corporate legislation.
The legislation offers California businesses the choice of organizing as a new class of corporation that meets a higher level of corporate responsibility called "benefit corporations." While a company organized under the state’s general corporate law is required to attribute highest importance to its profits, a benefit corporation must consider impacts on society, employees and the environment, as well as profits, and has the freedom to prioritize these at their discretion. They must also pursue the creation of a material positive impact on society and the environment while simultaneously meeting higher standards of accountability and transparency.
Since the time of the bill being enacted, Wendel Rosen has helped numerous companies convert their form of entity (or start their operations) as benefit corporations.