Parliament needs to pass minor amendments to the Corporations Act 2001 to enable Australian businesses to become benefit companies. The amendments would:
Include eligibility requirements for benefit companies
Specify how a company opts-in to the status
Include compliance provisions.
Directors would still be required to comply with their usual obligations under the Corporations Act 2001. Directors and officers would not be liable for failing to pursue or create the public benefit specified in the company’s constitution.
A business can then opt-in to become a Benefit Company by taking three actions
COMMIT to impact
Business commits to creating impact by including a general or specific benefit for society and the environment in its company constitution.
CLEAR DECISION MAKING
Business directors are empowered to consider stakeholder interests (e.g. employees, suppliers, customers) when making decisions.
Business reports on pursuing its benefit, and its impact on society and the environment against an objective third party standard.