August 7, 2013 - On July 29, 2013, the Community Contribution
Company (C3, for short) became available for use in British
Columbia, providing an alternative structure that balances
community benefit and shareholder profit.
A C3 is a special type of business corporation that has
community benefit purposes like a not-for-profit organization.
While C3s can pay dividends to shareholders, they must also
actively advance their community benefit purposes. The C3 brand
signals to the public that a business has a legal obligation to
conduct activities which benefit the public and does not operate
solely for private gain. This "hybrid" structure is meant
to attract investment in social enterprises and social purpose
businesses by socially-conscious investors who want to help the
community and realize a return on investment.
British Columbia is the first province in Canada to allow for
the creation of hybrid social-purpose corporations. Nova Scotia has
subsequently announced similar amendments to its legislation.
BC's C3 strives to improve on a model previously introduced in
C3s present a potential tool for existing charities, non-profits
and social enterprises, as well as an opportunity for social
entrepreneurs to create new community-minded businesses that
provide a benefit to the public.
Bull Housser, which has been involved in the development of the
C3 structure for several years, was one of the first out of the
gate, with associate Michael Blatchford, assisting a client to
incorporate a brand-new C3, Accelerating Social Impact CCC
Ltd., a social purpose business that will assist and help
develop other social enterprises and social purpose businesses.
The social enterprise section, already very strong in BC, is
excited by the opportunities created by the C3. It remains to be
seen how successful the C3 will be in attracting outside
investment. At present, the C3 is taxable in the same way as a
regular business corporation, although a special investment tax
credit is being discussed. It's important to note that C3s
soliciting investment from the public are subject to securities
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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Under the Income Tax Act, the Employment Insurance Act, and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions or GST.
Under the Income Tax Act, the Employment Insurance Act, the Canada Pension Plan Act and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions.
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