New social enterprise business model available in B.C.

Regulations for a new business model, dubbed Community Contribution Company (CCC or C3), are now in effect.

Business people shaking hands

A new type of business registration is now available in B.C. which the provincial government says will “bridge the gap” between for-profit businesses and non-profits.

Regulations for the new business model, dubbed Community Contribution Company (CCC or C3), are now in effect.

While not new — C3’s are based on a model first introduced in the United Kingdom in 2005 (Community Interest Companies or CICs) — the government believes the new regulations will help social enterprises attract capital by appealing to philanthropic investors who still expect some financial return.

C3 status signals that a company has a legal obligation to conduct business for social purposes and not purely for private gain, according to a press release from the Ministry of Finance.

The regulations were developed in consultation with members of the B.C. Social Innovation Council. Public consultations were held in 2010.

C3’s are subject to an “asset lock” with a strict cap on dividends that can be paid out to shareholders. The bulk of a C3’s profits must go toward the C3’s community purposes or be retained or transferred to a qualified entity, such as a charity. They must also have three directors and are required to publish an annual report describing their activities.

“This new model will unlock new ways to generate meaningful, local employment in B.C. and generate economic wealth for our province by encouraging private investment in B.C.’s social enterprise sector,” said Minister of Finance Michael de Jong. “I’m excited to see the positive impacts the C3 model will have on B.C. businesses and communities.”

Social enterprises can exist in many business areas and have many different objectives, including health, environmental, cultural or educational. For example, a social enterprise could provide recycling services in a community with the social objective of generating employment in collecting recyclables and applying most of the profits to a local charity.

“We expect the C3 model will be attractive to charities operating unrelated businesses and traditional corporations wishing to entrench goals beyond that of maximizing shareholder profits,” said Stacey Corriveau, executive director for B.C. Centre for Social Enterprise.

There are two main ways to form a C3:

– A C3 designation can be chosen at the outset on incorporation of a new company.

– A pre-existing company can become a C3 by amending its name and constitution to reflect the C3 status. This would require the unanimous consent of the company’s shareholders.

In Castlegar, business licensing is handled by the Development Services department. They can be reached by telephone at 250-365-7227, or in-person at City Hall, 460 Columbia Avenue.

 

Just Posted

EDITORIAL: Federal NDP challenges evident on Kootenay campaign trip

NDP Leader Jagmeet Singh tours the Kootenays in support of local MPs, proportional representation

Columbia Basin Trust announces grant for technology upgrades

The deadline for organizations to apply is Dec. 17

Police seek witnesses to fatal weekend accident

Wayne Kernachan was struck by a vehicle while responding to an accident

Forestry workers set to begin job action in Kootenays

Operations in Castlegar, Cranbrook, Galloway, Elko, Radium, Golden may see job action this week.

Castlegar pastors find life in wheelchair a challenge

The men found the obstacles were both physical and mental.

Josie Hotel will be ready on opening day, says management

West Kootenay’s first ski-in, ski-out boutique hotel to open this month

Shirtless stranger loomed over couch and started stabbing, bloody B.C. murder trial hears

Colin John pleads not guilty as trial opens in 2016 Chemainus murder case

Late 2019 too long to wait for ridesharing: B.C. Conservatives

“While the rest of the world is embracing this transportation revolution, B.C. is only now staggering slowly toward legislation on a business model that’s been mainstreamed for over a decade in other jurisdictions.”

Police aim to prevent retaliation after Hells Angel found dead under B.C. bridge

IHIT confirms Chad Wilson, 43, was the victim of a ‘targeted’ homicide

ICBC warns shoppers of the high-accident season at mall parking lots

Over 150,000 accidents happened during the holiday season last year

No deal in sight: Canada Post warns of delivery delays into January

Union holds fifth week of rotating strikes as both sides remain apart on contract negotiations

COLUMN: Higher interest rates will slow B.C. economy after ‘unusually robust’ show

Jock Finlayson is executive vice president and chief policy officer of the Business Council of BC

Jason Aldean, Old Dominion to headline Merritt’s Rockin’ River concerts next summer

Four-day music festival at Coldwater River from Aug. 1 to 4

Police looking into two more incidents at private Toronto all-boys’ school

Police and the school have said two of the prior incidents involved an alleged sexual assault

Most Read