Under the Business Corporations Act, S.B.C. 2002, c.57, the Community Contribution Company (CCC) Regulation is created (effective July 29, 2013, B.C. Reg. 63/2013).
The Regulation, among other things, provides:
- that a CCC must not, in any financial year, declare a dividend unless the total amount of all dividends declared in that financial year is not greater than the total of 40% of the CCC's profit for the financial year and any unused dividend amount for any previous financial year;
- that qualified entity is a qualified donee as set out in the Income Tax Act;
- the information that must be disclosed in the community contribution reports; and
- that on dissolution, the CCC would be subject to an asset lock to limit the distribution of assets to shareholders to a maximum of 40%.
The BC government released a press release can be found here.