User:Meaganbusath/PBCdraft

Public-benefit corporation is a type of for-profit corporate entity that is required by law to balance the financial interests of shareholders with the interests of others materially impacted by its operations. Most states require public benefit corporations to provide a "material positive impact on society and the environment..." In Delaware, public-benefit corporations are required to both identify a specific public benefit the business promotes, and operate responsibly towards the public in a general sense.

Public-benefit corporations are different than, and often confused with, B Corps. B Corps are organizations that engage in a private contract with B Lab to certify they have adopted socially conscious decision-making standards. BCorps are not a distinct form of legal entity. There is also some confusion with the more general term, benefit corporation. Benefit corporation is the term used by most U.S. states besides Delaware for similar legal entities. Benefit corporation also refers to non-profits in some U.S. states.

To be a public benefit corporation, the company's incorporation documents must state the public benefit the corporation intends to promote. Additionally, the corporation has to publish reports related to its public benefit status. For example, in Delaware, public-benefit corporations must publish reports explaining their public benefit goals, progress, and specific facts illustrating how they have benefited the public. Delaware was the 19th state to create a form of benefit corporation with sections 361-368 of Delaware General Corporate Law, which were passed in July 2013.

Delaware initially required a 90% shareholder vote to convert to a public-benefit corporation. This was reduced to 75% in 2015 and then to a simple majority in 2020.