A flexible purpose corporation (FPC) was a class of corporation in California lacking a profit motive when pursuing a social benefit defined in its charter.
[citation needed] A flexible purpose corporation differed from a Benefit corporation in that it targeted for-profit entities seeking traditional capital market investment.
The classification was first created in 2012 and was retired in 2015 via legislation in favor of the social purpose corporation (SPC) classification, with existing FPCs continuing their existence as SPCs.
Flexible purpose corporations were established in California S.B 201, which was signed into law on October 9 and became effective January 1, 2012.
This amendment renamed the “flexible purpose corporation” as the “social purpose corporation”; eliminated the waiver for the MD&A requirement; and now requires directors of SPCs to consider factors such as the overall goals of the corporation and the social purposes stated in its articles in their decision-making.