WIRD PBC is a Public Benefit Corporation
Why is WIRD PBC (Weirdworld) a Public Benefit Corporation?
The only binding way to incorporate morals or mission into a corporate form without risking a shareholder lawsuit is by becoming a Public Benefit Corporation.
Public Benefit Corporations give entrepreneurs the legal protection & freedom to consider their stakeholders and incorporate their morals and mission into their business.
One hundred years of case law have proven that benefit corporation legislation is necessary in order for a company to consider additional stakeholders.
What is a Public Benefit Corporation?
In the United States, directors of for-profit companies are required to act solely for the ultimate purpose of maximizing the financial returns to shareholders.
While corporations generally have the ability to engage in any legal activities, including those that are socially responsible, corporate decision-making must be justified in terms of creating shareholder value.
Mission driven and other socially conscious businesses, impact investors and social entrepreneurs are constrained by this inflexible legal framework that does not accommodate for-profit entities whose mission and impact is central to their business model.
Public Benefit corporations expand the obligations of boards, requiring them to consider environmental and social factors, as well as the financial interests of shareholders.
This gives directors and officers the legal protection to pursue a mission and consider the impact their business has on society and the environment.
Does being a benefit corporation affect a company’s tax status?
No. A company still elects to be taxed as a C or S corp. A Public Benefit corporation status only affects requirements of corporate purpose, accountability, and transparency; everything else regarding corporation laws and tax law remains the same.
What businesses have already become benefit corporations?
A few examples of well-known benefit corporations include Patagonia, Ben & Jerry, Method, Kickstarter, Plum Organics, King Arthur Flour and more.
What is WIRD PBC’s Public Benefit Purpose?
The specific Public Benefit Purpose of WIRD PBC is to work cooperatively with all stakeholders to develop technical and non-technical solutions to social and environmental challenges in order to create a more inclusive, equitable and just society.