A Corporate Form For The Mission Of Your Social Enterprise

1812 Words Dec 3rd, 2015 8 Pages
Deciding on a corporate form to protect the mission of your social enterprise is important, but possibly more important is ensuring that the corporate governance of your enterprise will allow for that mission to be protected and preserved. For CBAUI, we have incorporated several provisions within our charter and other aspects of our corporate governance to preserve our goal to provide online academic services to L-SES students in the greater New York City Area.
A. Charter
As a New York C Corporation, our corporate form does not formally provide mechanisms to preserve our mission. However, CBAUI has taken steps to incorporate in a state that has a constituency statute to provide our board of directors with the flexibility to consider our scholars, tutors and other groups as well as future shareholders when making decisions regarding the future of our enterprise. The constituency statute in New York has existed since the late 1980s, and allows for boards in New York to consider customers, employees and the communities in which they operate. Based on our mission, this would give our board the ability to consider factors other than shareholder profit maximization.
B. Board
We have a Board of seven, which includes one independent director. The board members have largely been chosen from stakeholders and experts from the education technology industry. Our governance structure also includes an advisory council of parents, volunteer tutors, scholars, education professionals and…
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