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12 Wyo. L. Rev. 91 (2012)
Benefit Corporation Legislation

handle is hein.journals/wylr12 and id is 95 raw text is: COMMENT Benefit Corporation Legislation Felicia R. Resor* I. INTRODUCTION .......................................................................................... 91 II. BACKGROUND ........................................................................................ 93 A. The Traditional Binary Organizational System ................................ 93 1. The Shareholder Wealth Maximization Norm ............................ 95 2. The Lack ofAccountability and Transparency Standards .............. 99 B. Hybrid Legal Entities ......................................................................... 100 1. Benefit Corporations .................................................................... 101 2. Flexible Purpose Corporations ...................................................... 103 3. Low-Profit Limited Liability Companies ...................................... 103 III. A N ALYSIS .................................................................................................. 105 A. Resolving the Shareholder Wealth Maximization Norm .......................... 106 1. Benefit Corporation Legislation Requires Changes to Internal Corporate Law ............................................................................ 106 2. Benefit Corporation Legislation Requires Changes to State Statutory Law ............................................................................. 107 3. Benefit Corporation Legislation Helps Prevent Litigation for Social Enterprise ......................................................................... 108 B. Benefit Corporation Legislation Establishes Accountability Standards for Corporate Social Responsibility ........................................................... 109 C. Benefit Corporation Legislation Establishes Transparency Standards for Corporate Social Responsibility ........................................................... 110 D. Benefit Corporation Legislation Creates Economic Opportunity for Wyom ing ...................................................................................... 111 E. Benefit Corporation Legislation Aligns with Wyoming Public Policy ...... 112 IV . C ONCLUSION ............................................................................................ 113 I. INTRODUCTION When the Maryland Governor signed into law the nation's first benefit corporation legislation, state Senator Jamie Raskin remarked, This is a great moment in the evolution of commercial life in Maryland and America. We are giving companies a way to do good and do well at the same time. The benefit corporations will tie public and private purposes together. A benefit corporation is one of a handful of new business entities designed to accommodate businesses that aim to benefit society in more ways than traditional corporations can through contributions to shareholders, consumers, employees, and general economic * Candidate for J.D., University of Wyoming, 2012.

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