This article posted on our partner site Mondaq.com discusses some of the legal questions that corporations wishing to financially support a registered charity using company time or money (i.e., engaging in corporate social responsibility activities) should ask themselves before doing so through gift or sponsorship.
One of the considerations noted by the author is whether the Articles of Incorporation, or other originating document, authorizes charitable giving in conjunction with the corporation’s basic purpose - to conduct business with a view to profit.
Business incorporators who read this article from any jurisdiction, will need to consider the fiduciary rules and case law governing directors in their guidance of the specific business activities that the corporation is permitted to undertake. This article will also guide company directors on the issues to spot when thinking about social/charitable actions.
This “blog bite” comes to you as a part of Clausehound’s exciting new collaboration with Mondaq!