Legislation Creating “B-Corps” Signed into Law
Governor Pat Quinn has signed a bill that allows Illinois to join California, New York, Hawaii, Virginia, Maryland, Vermont and New Jersey as states that offer a corporate distinction of “Benefit Corporation.”
According to State Rep. Sid Mathias (R-Arlington Heights), a chief co-sponsor of the bill, the law will allow corporations, which amend their articles of incorporation to include specific language about a public benefit, to be classified as a Benefit Corporation, or B-Corp. “Some examples of B-Corps might be a corporation which donates money regularly to assist low income individuals, or which donates funding toward preserving the environment or promoting the arts,” said Mathias. “The law would allow these businesses to have this special classification so that consumers could, upon their choosing, utilize the services of these corporations which strive to give back to their communities.”
Benefit Corporations will have to create an annual benefit report which outlines the benefit for its shareholders and the report must be posted on the corporation’s web site.
“This law will shine a favorable light upon Illinois corporations that provide a public benefit, and allows these corporations to send a loud message to individuals who wish to do business with companies that share their values.”