Implementation of a new corporate form with a dual corporate purpose into German corporate law?

The presentation raises the question whether a new corporate form especially designed for social enterprises should be implemented into German corporate law and, if so, how such a corporate form should be designed. Both the United Kingdom and 33 U.S. states have amended their respective corporate statutes and implemented a new corporate form whose key feature is a dual corporate purpose combining the generation of revenues and the creation of public benefit. The presentation will show that under German corporate law companies can pursue a dual purpose as described above after an amendment of their articles of association. However, problems associated with social enterprises, such as ‘green-’ and ‘social-washing’, the signalling of being a social enterprise, or the financing of social enterprises are not properly addressed in this case. In addition, it is argued that considerations derived from the economic analysis of corporate law (reduction of transaction cost, learning and network effects, incomplete contracts, the theory of public goods, market failure due to information asymmetries) support the implementation of a new corporate form for social enterprises.