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Nov. 19, 2017
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Minutes for HB2125 - Committee on Judiciary

Short Title

Amending the Kansas general corporation code to include public benefit corporations.

Minutes Content for Mon, Mar 20, 2017

Jason Thompson gave a brief on the bill, saying it amends the Kansas general corporation code to include public benefit corporations.  He then went on to describe each section and the contents therein. He concluded by answering questions from Committee members.

Proponent:

Bill Matthews stood before the Committee and gave his support (Attachment 12) for the bill saying that the primary objective is to increase flexibility for businesses in Kansas by expanding the choice of business forms, which will facilitate their access to new sources of private finance directed toward benefit corporations. He explained that this will give Kansas entrepreneurs the freedom to conduct business using a corporate form that is free from certain restrictions that apply to nonprofit corporations and keep Kansas competitive. Mr. Matthews went on to say that corporations still have to make annual benefit statements available to public.  He explained that a regular corporation's intent is to make money for the shareholders above everything else, however, public benefit corporations have the freedom to balance making money with public benefit, which can help avoid court suit for not making as much money as possible.

During the discussion portion, the Committee gained clarification on how money can be used, how they qualify, and the requirements.  In addition, they discussed how to agree on what is public benefit and what is not, and if this bill inadvertently creates a discrepancy in fairness.

Seeing no further conferees, questions, or comments, Chairman Wilborn closed the hearing.