Public benefit corporations have become popular with new generations of business people who wish to take into consideration environment, social and governance (“ESG”) goals. Now well recognized, third parties such as B Labs have sprung up to help companies include appropriate provisions in their charter documents and issue a certification after an assessment of the company. My partner, Spencer Feldman, recently wrote extensively on the topic. What is less well known is that B Corp is also willing to certify limited liability companies, the preferred vehicle for most commercial real estate ventures. LLCs for affordable housing projects or developments in sensitive areas that may face local resistance might be ideal candidates for public benefit or B Corp status.
You can read Olshan Corporate/Securities partner Spencer Feldman's blog post, "Public Benefit Corporations and Certified B Corporations: Adding Transparency into a Corporation’s Ideological View on its Role in Society" here.
You can read the B Labs page on LLC agreement provisions here.
You can read more about Benefit corporations here.
PartnerTom represents owners, operators and developers in the acquisition, financing, development, ground leasing, and sale of significant properties. His experience includes office towers, commercial condominiums, industrial ...