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A benefit corporation is owned by shareholders who contribute money, property or services and receive shares in return. The shareholders expect to profit from their investment through the issuance of dividends or the appreciation in value of their shares.
A public benefit corporation created by a government, also known as a statutory corporation or government owned corporations, generally provide free or subsidized services or benefits for the public.
The chief difference between a non-profit corporation and a benefit corporation?sometimes called a B Corporation?is the ownership factor. There are no owners or shareholders in a non-profit company. A benefit corporation, however, does have shareholders who own the company.
The Difference Between a Benefit Corporation and a B Corp B Corps have a higher bar set for them than benefit corporations. Benefit corporations don't have a set performance standard like B Corps. B Corps have an outside entity ? B Lab ? holding companies accountable for performance.
(a) A benefit corporation shall have the purpose of creating general public benefit. This purpose is in addition to, and may be a limitation on, the purposes of the benefit corporation under subsection 3.01(a) of this title.