Governor Jack Markell is set to propose an amendment that would modify Delaware General Corporation Law to permit the creation of public-benefit corporations, according to sources in the state. Although the proposed legislation would not impact any entity currently incorporated in Delaware and is strictly voluntarily, it has met some resistance from Delaware corporate governance analysts.
"For Delaware to specifically authorize a corporation to be in business for any purpose other than benefiting shareholders sends the wrong message," said Charles Elson, director of the Weinberg Center for Corporate Governance at the University of Delaware. "It sends the message that you have an accountability issue that investors are second-class citizens. If you want to benefit the world, form a charity."
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