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.
Three City Council members filed a motion today to cut the Los Angeles Police Department's budget by $100 million to $150 million for the 2020-2021 fiscal year.
While protests against police brutality continued to dominate headlines, Los Angeles County reported more than 40 additional deaths today due to the coronavirus, while the number of cases topped 58,000.
The 1992 Los Angeles Uprising was the nation’s first multiethnic urban riot, one that points to the complexities of policing in a city of different racial and ethnic groups.
Despite being overshadowed by a week of protests against police brutality, the coronavirus continued to claim lives in Los Angeles County, with health officials today announcing 60 new deaths and 1,202 new confirmed COVID-19 cases.
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