A better kind of business – Patagonia

Here’s how it works. Flexible Purpose Corporations can write one or more special missions into their articles of incorporation. They can be as ambitious as fighting climate change or as modest as maintaining a park near the company’s office. The law instructs directors to consider the special aims in their decision-making, even when it could mean lower returns for investors. To make the appeal as broad as possible, the law’s authors avoided setting a minimum standard for what a “special purpose” could be.

From an article on the outdoor clothing/adventure company Patagonia and its adoption of a new incorporation model under California law.

I strongly believe we need similar laws in Australia.

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