"New York State Authorizes Benefit Corporations"

On December 12, 2011, Governor Andrew Cuomo signed a bill making New York the seventh state to authorize the incorporation of benefit corporations (sometimes referred to as "B-Corps"). The new law, codified primarily in new Article 17 of the New York Business Corporation Law (the "BCL"), will go into effect in February 2012.  A benefit corporation is a for-profit entity obligated to further certain public benefits, as defined in the law and explained in this Stroock Special Bulletin.