COLUMBUS - On Wednesday, the Senate passed legislation sponsored by State Senator Matt Dolan (R-Chagrin Falls) which permits for-profit corporations to become benefit corporations so they might more easily pursue social good in Ohio communities, in addition to making a profit.
"Some estimate trillions of dollars of outside investment is denied to Ohio companies because we don't currently allow this flexibility for benefit corporations," said Dolan.
Under current Ohio law, a corporation may be formed— "for any purposes or combination of purpose for which individuals lawfully may associate themselves." By becoming a benefit corporation, entrepreneurs and investors have an additional choice when determining which corporate form is most suitable to achieve their objectives.
Currently benefit corporations exists in 34 other states, and Senate Bill 21 seeks to attract those entrepreneurs and investors to Ohio who want the same flexibility.
"Not only will this encourage charitable, environmental and cultural efforts in our communities, but it will also make Ohio companies more attractive for new sources of investment for their for-profit mission," Dolan added. "I encourage swift passage of this bill in the House."
Senate Bill 21 will now be sent to the House for further consideration.