2 thoughts on “What is a Flexible Purpose Corporation?

  1. The distinction between change and transformation is that “change” is just trying to fix the old system and make it better or different. Transformation looks at fresh new ideas, beliefs, behaviors and environments and creates new paradigms.

    What are the real financial, social and regulatory benefits of an FPC? Is it just lipstick on the pig? Is this change or transformation?

    Any company can agree to implement policies to engage in socially responsible and environmentally conscious behavior. What stands in the way of real transformation are laws and metrics currently in place. For example, securities regulations that prevent over 35 unaccredited investors from investing in an offering or an enterprise from having over 300 U.S. shareholders. If a group of 36 unaccredited people got together to invest in social or environmental for-profit enterprise and community, they would be in violation of Rule 501 and most blue sky laws.

    There needs to be a significant overhaul of the securities regulations both at the state and federal level and the metrics in the way companies are valued. Unless the new regulations allow socially responsible and environmental investing to be swept under EBITDA (e.g., EBITDASE – Earnings Before Taxes Depreciation Amortization, Social and Environmental), allow exchange of services for stock, ownership by more than 300 persons, unaccredited investors to voluntarily waive 501 and Blue Sky limits, so that people can participate in collaborative exchanges of goodness and consideration, it appears the FPC will be yet another attempt to do sustainable acts of goodness in a system based upon scarcity, greed, corruption, hoarding, poverty, war and stuff.

    So what can we do to make real transformation? I would love to collaborate in transformation together.

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