Bipartisan “Invest in Colorado Act” will Bring Inventive New Corporations to Colorado
DENVER─ As they continue to deliver on their promise to put forth the Colorado Works Jobs Package, Senate Democrats have introduced the Invest in Colorado Act sponsored by Senator Bob Bacon (D-Fort Collins) and Senator Shawn Mitchell (R-Broomfield).
Senate Bill 182 will help establish Benefit Corporations in Colorado. Benefit Corporations are companies whose purpose is to create a broader public benefit rather than being solely profit driven. As a Benefit Corporation a company’s specific social mission is written into their articles of incorporation so that shareholders can hold executives and officers accountable and ensure money is being reinvested back into social projects rather than just becoming profit. Articles of incorporation are the primary rules governing the management of a corporation.
This legislation will help bring in new businesses wanting to become Benefit Corporations, attract venture capital firms looking to invest in socially focused companies, and generate new jobs for Colorado. Seven other states have enacted statutes recognizing Benefit Corporations, and Benefit Corporations are supported by entrepreneurs, investors, business organizations, and legal experts.
Senator Bacon offered the following comment on Senate Bill 182 today:
“Benefit corporations are a wonderful addition to their communities because they use the power of business to address social problems. If companies can focus on being financially successful, creating jobs, and improving their surrounding neighborhoods at the same time it’s a win for everyone.”
Becoming a benefit corporation requires no additional certification. New Benefit Corporations can form by registering as such with the Secretary of State like any other business. If an existing business chooses to become a benefit corporation there is no additional certification necessary, all that is required is a vote by share holders and to reregister with the Secretary of State.
The Invest in Colorado Act is a key component in the Senate Majority’s “Colorado Works Jobs package,” a series of bills focused on continued job creation and economic growth. This legislation will now be heard in the Senate Judiciary Committee.