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A PBC has stronger protection against being sued by shareholders for focusing on goals besides $ valuation .
by plonh 11y ago
A PBC has stronger protection against being sued by shareholders for focusing on goals besides $ valuation .
- oddevan 11y agoAlso, they are still a "for-profit" entity; they just legally declare they're going to do things with said profit besides make money for the shareholders. Going full non-profit would have stricter requirements for income, marketing, business deals, etc. Mozilla did something similar where you download Firefox from Mozilla Inc. that has business arrangements with Google and Pocket (for example); The Mozilla Foundation itself can't enter into those sorts of agreements without violating their non-profit status. It's all really complicated and a big headache and Kickstarter's doing a good job by avoiding all that, honestly.