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Legal Structures for Social Enterprises – a nationwide conversation on law reform
On Monday 17 August 2020, the Australian Law Reform Commission co-hosted with the University of Melbourne a webinar with a panel of experts discussing the potential for a future ALRC inquiry into legal structures for social enterprises.
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In August 2020, the Australian Law Reform Commission and the University of Melbourne hosted a webinar discussing a potential inquiry into legal structures for social enterprises. Nearly 200 people attended, with many more registered to watch later. Key insights included:
- Purpose vs. Profit: COVID-19 has driven new focus on social purpose in business.
- Need for New Structures: Current corporate structures lack a design for social purposes, often requiring “work-arounds.” The ALRC inquiry could assess policy options for better alignment.
- Expert Opinions: Panelists suggested an inquiry should cover embedding purpose into legal structures, directors’ duties for social impact, governance, and evaluating social outcomes.
- Broader Needs: The sector also seeks more grant funding, easier procurement processes, templates, low-cost advice, and potential national regulation.
Key questions from participants involved accessibility of laws, defining social purpose, regulatory oversight, and tax treatment. B Lab’s CEO noted that a shift towards “stakeholder capitalism” has changed the conversation around directors’ duties, making it timely to assess if legal reform is still needed. Feedback on the need for an inquiry closed on 31 August 2020.
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