Social Purpose/Benefit Corporation

(Larry G) #1

This could, along with worker-owned cooperatives, be the sort of thing that helps seasteading.

(.) #2

a new corporate statute, the Social Purpose Corporation, that allows directors and officers whose corporations have elected one or more of the social purposes specified

“allows” I thought it was “free to choose”, but what do I know.

Interesting article.

(Larry G) #3

Fiduciary Duty for corporate officers has always been to maximize shareholder profit as a default position, in the absence of specific shareholder directives otherwise.

This is for corporations. Partnerships, LLCs with single members, proprietorships don’t generally have the Principal/Agent issue. But corporations have tax and financial benefits not available to individuals.

(.) #4

oooooooooooo, I know. I figured it out. It is free to choose, because the shareholders are
free to choose too.
Have you seen the movie: Other Peoples Money?

(Larry G) #5

The company as an entity has always been free to choose. The agents of the company have been constrained.

So a company’s shareholders can vote to choose a bad investment for reasons of environmental improvements or social impact, or to liquidate all assets and close the company, or sell it. The company’s agents (officers) have to work within the rules established by the shareholders. A CEO might negotiate a deal to sell, but the shareholders have to approve.

This format “pre-approves” certain types of decision-making criteria and insulates the officers from liability and criticism based upon making those socially conscious decisions rather than strict profit-based decisions.

(Larry G) #6

Rules in Florida

(.) #7

All that said appears to be true.

I favor a co-op style of business structure. I am not sure that it can be simpler, but yet to see.

(Larry G) #8

It’s an avenue for those seeking angel investors. Personally, I also favor the Co-op.

(.) #9

Yes, angel investors would be great, and they are possible.
Meanwhile I am planning to proceed on bootstraps.

(noboxes) #10

From Wikipedia: “Current ‘best practices’ suggest that angels might do better setting their sights even higher, looking for companies that will have at least the potential to provide a 20x-30x return over a five- to seven-year holding period.” So for every $10k they “invest” in your seastead, you must repay them $200k-$300k. They are not any kind of angel in my book.

(.) #11

Thank you for sharing your opinion. I have no more opinion to share about this subject.

(Larry G) #12

Five broad trends that point capital in the direction of sustainable enterprises that create long-term durable value:

Sustainability Improves Performance.

  • A survey of 200 academic studies found that “88% of reviewed sources find that companies with robust sustainability practices demonstrate better operational performance, which ultimately translates into cash flows,” and “80% of the reviewed studies demonstrate that prudent sustainability practices have a positive influence on investment performance.” - From the Stockholder to the Stakeholder

Public Market Investors are Focused on ESG Factors

  • “Strong governance, along with effective management of environmental and human capital factors, increases the likelihood that companies will perform over the long-term and manage risk effectively.” - CalPERS 2013 Investment Beliefs

Entrepreneurs Want to Lock in Mission

  • “Becoming a Benefit Corporation helps codify and support our mission. In AltSchool’s case, delivering a broad social impact goes hand-in-hand with creating a large and thriving business.” – Max Ventilla, Founder of Altschool

Talent Demands Purposeful Ecosystems

  • "Millennials will grow to 75% of the workforce by 2025, 77% say their “company’s purpose was part of the reason they chose to work there.” -Deloitte Millennial Survey

Non-Financial Information is Now Pivotal

  • "64% of investors say businesses do not adequately disclose non-financial risks and nearly half of investors would rule out investment based on certain non-financial disclosures” - Ernst and Young, Global Survey of Institutional Investors 2015


Would be nice to find an Angel Investor to help kick my ideas into gear. Hard to start, when you need money down and closing costs, to cover the initial property purchase. As far as I can tell, mine is the most eco-friendly project.

(noboxes) #14

Did you note the 2000% - 3000% interest rate on the money the angels loan you?

If they loan you $40k at 2000%, you pay them back at $9,500 per month for 7 years. You’ve paid the $40k back in 5 months, but you still owe them for the next 6.5 years. Just pay yourself “back” the $9,500 for 5 months and you’ll have the $40k you need.


Oh, I’m not looking for loans, to get the funds, that’s for certain.

Guess those ‘Angels’ need to be aware that I’ll accept their donations, not loan agreements.

(noboxes) #16

Then you are looking for a grant, not an investor. A grantor may hold you to a certain project they like and want to see done, but an investor always wants more money back than a legal bank is allowed to charge.


Depends on what they actually want to gain. Several members want a place to be able to build and launch, but not the full expense of either renting, or buying enough space to do so…

If I had the down payment and closing costs covered, then the mortgage was my bill, then they had access to fit their goals, it could be a win/win situation.

(noboxes) #18

I do not see where you contradicted me.

You mentioned “members”, those wouldn’t be “angel investors” or grantors, would they?

(noboxes) #19

You can see the “free money” (which you do not repay, unlike money from investors) comes in various colors, has variable entanglements, usually from different people, with different qualifications. Whatever this forum software would have quoted below is not within my control, so i hacked, i mean i “turned off” the quoting.

There’s more links to subsets of each on each page so you can spend many hours looking thru the linked pages on Wikipedia.