Shareholders Approve Public Company Conversion to PBC – In a Landslide!
Last fall, Liz blogged about some of the possible benefits of B-corps. At that time, Veeva Systems had formed a board committee to explore becoming a public benefit corporation. Of course one hurdle to a public company PBC conversion is the need for shareholder approval. Last week, Veeva announced that its shareholders gave the company two thumbs up as they overwhelmingly approved the company’s proposal to convert to a PBC – the company received support from 99% of its voting shareholders. On February 1, Veeva will become a PBC, making it the first publicly traded company and largest-ever to convert to a PBC, here’s an excerpt from the company’s press release:
As a PBC, Veeva will remain a for-profit corporation but will be legally responsible to balance the interests of multiple stakeholders, including customers, employees, partners, and shareholders. It will also broaden its certificate of incorporation to include a public benefit purpose, ‘to help make the industries it serves more productive and create high-quality employment opportunities.’
A key technology partner to the life sciences industry, Veeva is dedicated to customers’ mission to advance human health and wellbeing. This move aligns Veeva’s legal charter with this broader mission and the company’s core values, including do the right thing, customer success, and employee success.
-Lynn Jokela, TheCorporateCounsel.net January 20, 2021
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