The Benefit Company legal form
B Lab UK has proposed proposing the creation of a Benefit Company in UK statute, offering an alternative legal form which is already adopted in other countries. This would be an optional status to establish a stakeholder alternative to shareholder primacy within UK company law.
The government has announced as Recommendation 9 of its review into mission-led business, that it will explore the creation of a benefit company legal form. To stay up-to-date with the process and to be kept aware of any campaign work that B Lab UK will run in conjunction with this legal form, sign up using the form below:
Watch the video below to get a short introduction to what the Benefit Company legal form is and who it will benefit.
Clarity will enable business leaders and company directors to pursue this alternative path – and create broader value for all of society. The creation of a Benefit Company can be achieved through an amendment to Section 172 of the Companies Act and fits within the UK's permissive regime.