Unlike Benefit Corporations, Social Purpose Corporations are not required to have a purpose of creating general public benefit, nor are they required to prepare assessments based on third party standards.
Further, their directors are not required to consider any particular public benefit related factors when addressing proposed actions, and there are no provisions authorizing benefit enforcement proceedings.
Social Purpose Corporations are, however, required to deliver extensive annual reports to their shareholders. Each report must contain a management discussion and analysis (special purpose MD&A) concerning the corporation’s purpose or purposes as set forth in its Articles of Incorporation. The corporation is also required to post the special purpose MD&A on its website or to provide it through other similar electronic means.