Michael Pirron v. Impact Makers

Michael Pirron v. Impact Makers

Settlement AgreementMichael Pirron v. Impact Makers

Impact Makers is a Richmond, Virginia-based IT consulting firm with a revolutionary social enterprise model. Founded in 2006 by Michael Pirron  with $50 and a laptop, it grew to become a 140-person company last valued in 2018 at $18.6 million.

From the beginning, Michael built the company on an “all-profit-to-charity” model. In 2015, the B Corp pledged to donate all of the company’s equity (at that time worth $13.4 million) to two public charities: The Community Foundation of Greater Richmond and Virginia Community Capital.

The business was jeopardized in 2018 and 2019 when the Board of Directors pressured Michael to resign as Permanent Director – a position created to allow him to oversee Impact Makers’ direction and to protect the gift to the community. When their efforts to oust Michael failed, in April 2019, the Board pushed through a sale of the $18.6M firm for only $1,000. Simply put, the Board violated Michael’s rights to protect the company he created.

Dunlap Law represented Michael Pirron in the first benefit enforcement proceeding in the United States. Tricia Dunlap wrote the complaint that brought the Impact Makers’ Board to the negotiating table, negotiated the settlement, and drafted a settlement agreement that reversed the sale of Impact Makers shares. The agreement also restored the integrated governance model between Impact Makers and the nonprofit IM Holdings that was designed to provide independent oversight of Impact Makers.

The settlement helped Michael achieve his goal of restoring IM Holdings’ oversight of the company and ensuring the fulfillment of IM’s pledged gift to the community.