Benefit Company status
There are three obligations that Benefit Companies will opt into.
Importantly, there are no changes to other obligations under the existing Corporations Act.
Redefined Company Purpose
Benefit Companies will be required to including a binding corporate purpose in their constitution requiring the company to create a material positive impact on society and the environment (known as ‘general public benefit’) in addition to being financially successful.
The duties of the directors of Benefit Companies are changed to require them to consider the interests of non-financial stakeholders in addition to the financial interests of shareholders.
Requirement to Report on expanded Purpose
The company must report annually on overall social and environmental performance using a third party standard.