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Social Enterprise Articles Of Association Template for United States

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Key Requirements PROMPT example:

Social Enterprise Articles Of Association

"I need Social Enterprise Articles of Association for a new educational technology venture launching in March 2025, with specific provisions for profit sharing between shareholders and community beneficiaries, plus strong asset lock provisions to protect our educational mission."

What is a Social Enterprise Articles Of Association?

Social Enterprise Articles of Association are essential governing documents used when establishing a social enterprise in the United States. They define how the organization will balance profit-making activities with social impact, incorporating specific provisions for asset locks, stakeholder engagement, and impact measurement. These articles are particularly important in states with specific benefit corporation or social enterprise legislation, ensuring compliance while protecting the organization's social mission. The document typically includes provisions for governance, shareholding structure, decision-making processes, and mechanisms for maintaining social purpose.

What sections should be included in a Social Enterprise Articles Of Association?

1. Company Name and Details: Legal name, registered address, and type of social enterprise entity

2. Purpose and Social Mission: Statement of social/environmental purposes and mission

3. Definitions: Key terms used throughout the articles

4. Share Capital Structure: Details of share classes and rights attached

5. Members' Rights and Obligations: Rules governing membership, voting rights, and responsibilities

6. Board Structure: Composition, appointment, and removal of directors

7. Decision Making: Procedures for board and member decisions

8. Asset Lock Provisions: Rules protecting assets for social purpose

What sections are optional to include in a Social Enterprise Articles Of Association?

1. Community Interest Provisions: Additional provisions required if registering as a Community Interest Company or similar social enterprise structure

2. Profit Distribution Rules: Specific rules and limitations regarding dividend distribution and profit allocation

3. Stakeholder Involvement: Formal mechanisms for stakeholder participation and engagement in governance

What schedules should be included in a Social Enterprise Articles Of Association?

1. Share Capital Table: Detailed breakdown of share structure and ownership

2. Social Impact Metrics: Defined measures and frameworks for social impact assessment

3. Board Committees: Terms of reference for standing committees

4. Asset Lock Details: Specific provisions and mechanisms for asset protection and social mission preservation

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

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Industries

Internal Revenue Code: Federal tax regulations governing tax-exempt organizations and social enterprises, including requirements for maintaining tax status and reporting obligations

SEC Regulations: Federal securities laws and regulations that apply if the social enterprise plans to issue shares or raise capital through investment offerings

Federal Employment Laws: Including Fair Labor Standards Act and other federal employment regulations governing worker rights, minimum wage, and employment conditions

State Corporation Laws: State-specific regulations governing the formation, operation, and dissolution of corporations, including filing requirements and corporate governance

Benefit Corporation Laws: State-specific legislation enabling and regulating benefit corporations, including requirements for social mission, stakeholder consideration, and impact reporting

LLC Acts: State laws governing Limited Liability Companies, including formation, management structure, and operating requirements

L3C Regulations: State-specific regulations for Low-profit Limited Liability Companies, combining charitable mission with limited profit-making capability

State Tax Regulations: State-specific tax laws and requirements applicable to social enterprises, including any special provisions for hybrid entities

Cooperative Corporation Laws: Legislation governing the formation and operation of cooperative enterprises, including member rights and profit-sharing requirements

Nonprofit Corporation Laws: State and federal regulations governing nonprofit organizations, particularly relevant for social enterprises with strong charitable components

Industry-Specific Regulations: Sector-specific laws and regulations that may apply depending on the social enterprise's area of operation (e.g., healthcare, education, environmental services)

Transparency and Reporting Requirements: Legal obligations for public disclosure, impact reporting, and stakeholder communication specific to social enterprises and benefit corporations

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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