‘B’ Corporations: Will Nevada Be Left Behind?December 4, 2011 – Articles Las Vegas Review Journal
Nevada represents itself as a business-oriented jurisdiction; organizations such as the Nevada Development Authority solicit business owners in California and other states to relocate their enterprises to the Silver State, where the corporation laws are progressive and the tax environment is attractive.
However, the latest trend in corporate law -- the benefit corporation -- threatens to leave Nevada trailing well behind other states in the race to attract and retain businesses and the jobs associated with them.
The benefit corporation -- or B Corp -- is a business entity that creates a public benefit and satisfies certain tests of transparency and accountability. Unlike traditional corporations, in which shareholders alone elect directors who then serve at the pleasure of the equity owners, the directors of a B Corp hold a duty to serve the best interests of all stakeholders, including shareholders, employees, customers, suppliers, the community and the environment.