18 Companies Register as Benefit Corporations Under New California Law | KCET
18 Companies Register as Benefit Corporations Under New California Law
Ventura-based Patagonia this week was the first to register as a Benefit Corporation under a new 2012 California law. Alex Goldmark at GOOD nicely described the scene on Tuesday: "When the California Secretary of State's office opened its doors this morning, there stood a band of smiling millionaires..."
Goldmark explained that "A company that files as a Benefit Corporation, as opposed to an LLC, C Corp, or other existing type of company, must consider the impact of business decisions on the environment, employees, and the community as well as the financial return to shareholders."
Patagonia CEO Yvon Chouinard told the Ventura County Star that the law is "going to separate out the green washers."
In all, 18 companies registered.
As explained by the LA Times, "California corporate law historically mandated that the interests of shareholders be paramount to those of all other parties in all circumstances," but this law will legally shield corporate officers from shareholder lawsuits "who contend that company's environmental or social policies diluted the value of their stock."
"This is California at its best, showing there is a way to create jobs and grow the economy while raising the bar for social and environmental responsibility," said Assemblymember Jared Huffman, who introduced the legislation in a press release.
During a visit to Los Angeles to get updates on anti-coronavirus efforts, Gov. Gavin Newsom today announced the signing of an executive order barring eviction of renters affected by the virus.
Five more deaths due to coronavirus were reported today in Los Angeles County, raising the total to 26, and the county's mortality rate from the illness rose above the levels seen across the country and in New York City.
For Martini and the thousands of others in her profession, the future of the real estate market in Southern California is unknown. Experts say it's too soon to know what will happen to the market and how the pandemic will affect prices.
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