New corporate proposal defeated in NC House

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Submitted: Thu, 05/16/2013 - 3:59am
Updated: Thu, 05/16/2013 - 4:00am

RALEIGH, N.C. (AP) – The House has rejected an effort to create a new kind of corporate structure in North Carolina that would focus on benefiting the public in addition to making a profit.

The House voted 52-60 Wednesday night against a measure called the North Carolina Benefit Corporation Act. It would allow the formation of what’s known as a “B-corp,” in addition to the current “S-corp” and “C-corp” formats under which corporations can be established.

Bill sponsor Rep. Chuck McGrady of Hendersonville says the new type of corporation is already permitted in other states and would allow a younger generation of entrepreneurs to promote the good of society or the environment.

But critics say the measure encourages a move away from capitalism and isn’t necessary under the state’s current corporate structure.

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