Are Hybrids Really More Efficient? A “Drive-By” Analysis of Alternative Company Structures, as appeared in ABA’s Business Law TodaySeptember 21, 2012
Katherine Lofft, a Member of the Firm in the Corporate Services and Health Care and Life Sciences practices, in the Washington, DC, office, Purvi Maniar, a Member of the Firm in the Health Care and Life Sciences and Corporate Services practices, in the New York office, and Tamar Rosenberg, an Associate in the Health Care and Life Sciences practice, in the New York office, cowrote an article titled, "Are Hybrids Really More Efficient? A 'Drive-By' Analysis of Alternative Company Structures."
Following is an excerpt:
The evolution of the legal approach to company structure in the United States has generally taken two, largely divergent, paths. Down one path, there is the traditional "for profit," or business, corporation. A business corporation may take one of many forms and be organized for any legal business purpose, but is generally regarded as being largely, if not exclusively, consumed with maximizing shareholder value. Down the other path, there is the classic "non-profit" organization. A non-profit is generally required to have an educational, scientific, charitable, or other non-commercial purpose(s), and may not be operated for private gain.
The attached file is reproduced with permission from the American Bar Association.