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Published: Hans Rawhouser
Hans Rawhouser (Management, Entrepreneurship and Technology) and Michael Cummings (formerly in department of Accounting) recently published a paper examining L3C and Benefit Corporation legislation from 2008 to the present in the Wyoming Law Review. These new legal forms are designed to better fit the needs of entrepreneurs seeking to accomplish a social mission while making profit.
The paper draws on qualitative data from legislative transcripts to observe the participation of related stakeholder groups—attorneys and bar associations—and how proponents of such laws worked with these stakeholders to accomplish their legislative objectives. The paper also describes the range of bar association responses (support, oppose, modify) to hybrid entity legislation. Some associations grounded their position in an underlying business logic, highlighting the impacts for traditional for-profit corporations. Other associations grounded their position in a non-profit or charitable logic, focusing on the consequences of the proposed new form for charitable organizations. Still others seemed to be aware of and considering both sectors in their reaction to the proposed social hybrid legislation. By cataloging and describing these interactions, the paper highlights the importance of effective collaboration with stakeholders in the legal profession for institutional entrepreneurs seeking to shape the availability of new corporate forms.
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