Community Interest Company Consultation

The Ministry of Finance is considering amendments to the Business Corporations Act to allow for the incorporation of a new hybrid type of company - the Community Interest
Company - which would both benefit the larger community and allow limited investor returns within the context of a traditional for-profit company.

CICs would be incorporated with all the flexibility and certainty of regular companies, but under legislation that ensures they primarily benefit the community. Dividends on CIC shares and interest on bonds would be capped to ensure that profits are either retained by the CIC or funneled to the community benefit. Becoming a CIC would signal publicly that a company will be conducting its business for social purposes and not purely for
private gain. This 'branding' could help attract investment capital that is currently not accessible to the social enterprise sector.

CICs would allow an option currently not available with a regular business corporation, whose primary focus is making money for shareholders, or a society, which is not allowed to make a profit.

The purpose of this consultation is to seek the input of all British Columbians on the CIC model and its potential impact on existing non-profit and for-profit entities operating in the province. You are invited and encouraged to participate in this consultation by responding to the questions in the attached consultation letter or by providing your own comments on the CIC model.

The official deadline for submissions was December 1, 2010. The ministry will, however, continue to consider submissions received after that date when developing reports or recommendations regarding the CIC proposal.

Community Interest Companies - Consultation Letter

News Release