4 ms·

They constantly say they are a Public benefit corporation but there is no actual difference between that an a corporation. This leads to people assuming some ki

They constantly say they are a Public benefit corporation but there is no actual difference between that an a corporation. This leads to people assuming some kind of benevolence.

_cenw 7mo ago
If you need a reference measure of "Public Benefit Corporation", Anthropic is one too.
dbbk 7mo ago
There is an actual difference
- AuthAuth 7mo ago
  No there isnt.
  - asadotzler 7mo ago
    Yes true. B Corps allow the board to weigh things besides shareholder value. That's a meaningful distinction. The idea is that shareholder primacy isn't compatible with everything every corporation wants to do, so having a board that's protected from lawsuits when they put things above shareholders is a useful thing and B Corps offer that. The board can, for example, reject a "superior" takeover bid without fear of lawsuits from shareholders pissed off they didn't get the biggest payday available. A typical C Corp's board MUST take the highest offer, and not doing so WILL get them sued. That means if GoodGuy B Corp is about to be taken over by BadGuy Inc., the GoodGuy board can say "No, they're not compatible with the public benefit mission we incorporated under so we're not going to accept their offer." That's actually really useful.
    - AuthAuth 7mo ago
      No GoodGuy B Corp would still need to fear lawsuits in that situation and PBC or not they would be able rejecting that decision. If they get sued there is a good chance they can defend the decision.
asadotzler 7mo ago
Wrong. B Corp boards are legally protected from lawsuits if they reject the highest bid when they put the company up for sale. In a C Corp, once the board puts the company on the auction block, not taking the highest bid, even from a company that's diametrically opposed to the goals of the C Corp, opens the board up to lawsuits from shareholders pissed about not getting the maximal return. Suggesting this is no difference shows a lack of understanding of the legal regime these types of corporations operate under.

They constantly say they are a Public benefit corporation but there is no actual difference between that an a corporation. This leads to people assuming some kind of benevolence.

_cenw 7mo ago

If you need a reference measure of "Public Benefit Corporation", Anthropic is one too.

dbbk 7mo ago

There is an actual difference

AuthAuth 7mo ago
No there isnt.
- asadotzler 7mo ago
  Yes true. B Corps allow the board to weigh things besides shareholder value. That's a meaningful distinction. The idea is that shareholder primacy isn't compatible with everything every corporation wants to do, so having a board that's protected from lawsuits when they put things above shareholders is a useful thing and B Corps offer that. The board can, for example, reject a "superior" takeover bid without fear of lawsuits from shareholders pissed off they didn't get the biggest payday available. A typical C Corp's board MUST take the highest offer, and not doing so WILL get them sued. That means if GoodGuy B Corp is about to be taken over by BadGuy Inc., the GoodGuy board can say "No, they're not compatible with the public benefit mission we incorporated under so we're not going to accept their offer." That's actually really useful.
  - AuthAuth 7mo ago
    No GoodGuy B Corp would still need to fear lawsuits in that situation and PBC or not they would be able rejecting that decision. If they get sued there is a good chance they can defend the decision.

asadotzler 7mo ago

Wrong. B Corp boards are legally protected from lawsuits if they reject the highest bid when they put the company up for sale. In a C Corp, once the board puts the company on the auction block, not taking the highest bid, even from a company that's diametrically opposed to the goals of the C Corp, opens the board up to lawsuits from shareholders pissed about not getting the maximal return. Suggesting this is no difference shows a lack of understanding of the legal regime these types of corporations operate under.