Tonkon Torp business attorneys David Forman and Adam Adkin had an article published in the spring issue of the Nonprofit Organizations Law Section of the Oregon State Bar Newsletter. In their article, "Private Businesses Benefiting the Public: Oregon’s Benefit Company," the two outline the nature of a benefit company under Oregon law. Since January 1, 2014, Oregon entrepreneurs have been able to register their corporation or LLC as a “benefit company” under Oregon law. Unlike a standard for-profit business, whose fundamental purpose is to achieve a profit for its owners, a benefit company has the additional requirement that directors and officers must consider the public benefit promoted by their decisions. Accordingly, a benefit company not only has the ability to make choices that might achieve a public benefit at the expense of its profits, but is obligated to consider the general impact that the conduct of its business and operations has on society and the environment.
To read their article in full, please click on the pdf link below.
