T he So c ia l E nte rprise L ife Cyc le Da na Bra kma n Re - PowerPoint PPT Presentation

T he So c ia l E nte rprise L ife Cyc le Da na Bra kma n Re ise r a nd Ste ve n De a n Pro fe sso rs o f L a w Bro o klyn L a w Sc ho o l

Ob je c tive s  Re spo nd to so c ia l e nte rprise dive rsity  I de ntify la w a s a n a lly, no t a n o b sta c le  Ana lyze tra je c to ry o f so c ia l e nte rprise la w

T he So c ia l E nte rprise L ife Cyc le  Se ve ra l b ro a d pha se s o f the life o f a so c ia l e nte rprise  Risks to dua l missio n va ry in the se diffe re nt pha se s  No t e ve ry so c ia l e nte rprise will pa ss thro ug h e a c h  No t a lwa ys line a r  Assista nc e la w c a n pro vide will va ry a s we ll

F o rma tio n  K e y Cha lle ng e = L e g itima c y  L e g a l F o rms o f Org a niza tio n  No npro fit fo rms unsuita b le b e c a use o f no ndistrib utio n c o nstra int  F o r-pro fit fo rms usa b le , BUT  I nc o rpo ra tio n risks so c ia l missio n prio ritiza tio n  L L C fo rms c o mmunic a te little  Hyb rid fo rms b ro a dc a st dua l missio n a nd e mpo we r fiduc ia rie s  E xpre ssly dua l purpo se  Re q uire fiduc ia rie s to c o nside r no n-sha re ho lde r c o nstitue nc ie s a nd pro te c ts the m whe n do ing so  Be ne fit c o rpo ra tio n, L 3C, De la wa re PBC, o the r sta te -spe c ific fo rms

Gro wth  K e y Cha lle ng e = T rust  Sc a ling re q uire s e ntre pre ne urs a nd so urc e s o f fina nc ia l a nd huma n c a pita l to a ssure o ne a no the r the ir c o mmitme nts to so c ia l missio n c a n b e truste d  Cre a tive le g a l instrume nts  Re a ssure inve sto rs, e mplo ye e s, c o nsume rs a nd e ntre pre ne urs  F L Y Pa pe r use s c o nc e ssio na ry te rms a nd c o nve rsio n rig hts  Optio ns use c o mpe nsa tio n struc ture a nd ve sting trig g e rs  L o ya lty pro g ra ms c a n e mpo we r c o nsume rs to pro te c t missio n  Se c uritie s la w, inc luding c ro wdfunding re g ula tio n, ma y a pply  Ce rtific a tio n pro g ra ms c a n a lso g e ne ra te trust  I mpo rta nc e o f me tric s ne two rk e ffe c t

De c line  K e y Cha lle ng e = Pre se rva tio n  De a l te rms a nd g o ve rna nc e me c ha nisms c a n ste wa rd missio n po st-sa le  Re c la iming the Be n & Je rry’ s e xa mple  Va lue unlo c ks fle xib ility e ve n fo r sma lle r a nd le ss suc c e ssful se lle rs  Co ntra c t a nd g o ve rna nc e c a n a lso pre se rve missio n in disso lutio ns tha t a vo id inso lve nc y  Co mmitte d o wne rs a nd inve sto rs c a n ne g o tia te missio n- pre se rving distrib utio ns  BUT , inso lve nc y e le va te s c re dito r inte re sts  I nside a nd o utside o f b a nkruptc y  Cho o se c re dito rs c a re fully  F a c e de c line he a d-o n a nd pla n while yo u c a n

T ha nk yo u. Da na Bra kma n Re ise r da na .b ra kma n@ b ro o kla w.e d u