Posts Tagged ‘destination of funds test’

Considering social enterprise

May 12th, 2014 by Lauren Blumas

The House of Commons Standing Committee on Industry, Science and Technology undertook an extensive review of the Canadian Business Corporations Act back in 2010 and recommended consultation on 4 discrete issues, one of which was the rules applicable to incorporation of socially responsible enterprise.

Much of the discussion since has focused on introducing a hybrid corporate vehicle similar to the Community Contribution Company form available in B.C. In a nutshell, these corporations are somewhere in-between a non‑profit and a traditional business corporation. They operate with a community purpose and can have shareholders. They are also subject to an asset lock that is intended to ensure that a majority of the assets are fed back into the community, as opposed to shareholders, upon dissolution.

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