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0 pointslenerdenator28d ago0 comments

Well, now I'm wondering, if the company was chartered with the public benefit in mind, could you not sue if they don't follow through with working in the public interest?

If regular corporations are sued for not acting in the interests of shareholders, that would suggest that one could file a suit for this sort of corporate behavior.

I'm not even a lawyer (I don't even play one on TV) and public benefit corporations seem to be fairly new, so maybe this doesn't have any precedent in case law, but if you couldn't sue them for that sort of thing, then there's effectively no difference between public benefit corporations and regular corporations.

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hluska28d ago

I really don’t see it. PBCs are dual purpose entities - under charter, they have a dual purpose of making profit while adding some benefit to society. Profit is easy to define; benefit to society is a lot more difficult to define. That difficulty is reflected at the penalty stage where few jurisdictions have any sort of examination of PBC status.

This is what we were all going on about 15 years ago when Maryland was the first state to make PBCs legal. We got called negative at the time.

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Hamuko28d ago

I think public benefit corporations (like Anthropic) are quite poorly defined so I'm not sure how successful a lawsuit is.

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