THE BENEFIT CORPORATION

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Did you know that as of December 1, 2012, there is New Legislation to the Massachusetts General Laws Chapter 156E.

Chapter 238 of the Acts of 2012 recently authorized a new type of entity which will be administered by the Corporations Division: the Benefit Corporation. Entities may incorporate as benefit corporations or may convert to benefit corporation status effective December 1, 2012.  However, they may begin filing Articles of Organization for a benefit corporation with a later effective date of December 1, 2012 up to 90 days prior.

The new Chapter 156E, signed into law as part of the Acts, governs the establishment and operation of benefit corporations.

What are benefit corporations?

Benefit corporations are corporations organized under Chapter 156A (the professional corporation

statute) or Chapter 156D (the business corporations statute) that have elected to be a benefit corporation in their Articles.

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