LAW AND SOCIAL ENTREPRENEURSHIP

MARYLAND FIRST TO PASS BENEFIT CORPORATION

One small step for Maryland. One giant leap for Social Enterprise!

On Monday the Maryland Legislature made history by being the first state in the US to pass a Benefit Corporation bill into law. The bill passed the House, 135-5, on Monday. The Senate version passed, 44-0.

The benefit corporation will allow corporations to consider stakeholder value not solely maximization of shareholder value, thereby, effectively eliminating the conflict between social/environmental mission and profit.

“I think that Maryland can become the Delaware of B corporations,” said said Sen. Jamie B. Raskin, the Senate sponsor of the legislation. “We could be the magnet for companies that want to organize in this way.”

Stay tuned for more in depth coverage of this Maryland legislation.

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