Section 1 (1) definition of "hardship disposition" BEFORE repealed by 2002-39-1, effective May 30, 2002 (Royal Assent).
"hardship disposition" means a disposition of a share occasioned by one of the following circumstances occurring after the initial subscription for the share:
(a) the death, permanent disability, bankruptcy or bona fide involuntary loss of employment of the shareholder or, if the shareholder is a trust, of the annuitant or beneficiary of the trust;
(b) other prescribed circumstances;
Section 1 (1) definition of "equity share", paragraph (b) BEFORE amended by 2003-70-132, effective March 29, 2004 (BC Reg 64/2004).
(b) are not restricted in their right to share in the profits of the corporation or in the division of the corporation's assets on dissolution or winding up, and
Section 1 (1) definition of "major shareholder" BEFORE amended by 2003-70-132, effective March 29, 2004 (BC Reg 64/2004).
"major shareholder" means, with respect to a corporation, a person who, together with his or her associates, owns, directly or indirectly, shares carrying 10% or more of the voting rights attached to all outstanding shares of the corporation or shares of the corporation carrying 10% or more of the right to share in the profits of the corporation or in the division of its assets on dissolution or winding up;
Section 1 (1) definition of "spouse", paragraph (b) BEFORE amended by 2011-25-324, effective March 18, 2013 (BC Reg 131/2012).
(b) is living and cohabiting with another person in a marriage-like relationship, including a marriage-like relationship between persons of the same gender, and has lived and cohabited in that relationship for a continuous period of 6 months;
Section 3 (a) BEFORE amended by 2003-70-133, effective March 29, 2004 (BC Reg 64/2004).
(a) is incorporated under the laws of British Columbia or of Canada or, being a corporation incorporated in any other province of Canada, is registered to carry on business in British Columbia under the Company Act,
Section 4 (1) (j) BEFORE amended by 2002-39-2, effective May 30, 2002 (Royal Assent).
(j) that share transactions under paragraph (h) may be governed by limits set out in the plan if those limits
(i) are based on a reasonable test of ability to pay, and
(ii) give priority to hardship dispositions;
Section 4 (1) (d) (iv) BEFORE amended by 2003-70-134, effective March 29, 2004 (BC Reg 64/2004).
(iv) will, immediately following their acquisition, be registered in the name of each employee that purchases them or in the name of a trustee, if the shares are held by the trustee for the benefit of an employee, and despite the Company Act, will be held, for 3 years from the date of the purchase, in the custody of an authorized depository and under such terms and conditions as are approved by the administrator, and
Section 4 (1) (j) BEFORE amended by BC Reg 338/2006 under RS1996-440-12, effective December 4, 2006 (BC Reg 338/2006).
(j) that share transactions under paragraph (h) may be governed by limits set out in the plan if those limits, are based on a reasonable test of ability to pay;
Section 7 (2) BEFORE amended by 2003-4-1(a), effective March 12, 2003 (Royal Assent).
(2) On receipt of an application under subsection (1), the administrator must, subject to subsection (3), following the approval of the Minister of Finance and Corporate Relations and in accordance with section 13.1 of the Income Tax Act, issue a tax credit certificate in the amount referred to in subsection (1), unless the administrator considers that the corporation or its directors, officers or shareholders are conducting the business or affairs of the corporation in a manner that is contrary to the spirit and intent of this Act whether or not there has been a contravention of this Act or the regulations.
Section 7 (3) (f) BEFORE repealed by 2003-4-1(b), effective March 12, 2003 (Royal Assent).
(f) the sum of the shareholder's aggregate tax credits allowed in respect of all previous years under section 13.1 of the Income Tax Act and the amount of the entitlement in respect of which the tax credit certificate is now being applied for is $10 000 or less,
Section 7 (1) BEFORE amended by 2004-51-11(a), effective October 16, 1997 [retro from May 20, 2004 (Royal Assent)].
(1) A corporation must apply, on behalf of each of its eligible employees, to the administrator for a tax credit certificate entitling each of those eligible employees to a tax credit under section 13.1 of the Income Tax Act, equal to 20% of the amount received by the corporation, in that calendar year or within 60 days immediately following that calendar year, for shares issued to those eligible employees by the corporation under a registered employee share ownership plan less the amount of any tax credit previously allowed with respect to any shares of the corporation disposed of by the employee shareholder within the immediately preceding 2 years.
Section 7 (2) BEFORE amended by 2004-51-11(b), effective October 16, 1997 [retro from May 20, 2004 (Royal Assent)].
(2) On receipt of an application under subsection (1), the administrator must, subject to subsection (3), following the approval of the minister responsible for the administration of the Income Tax Act and in accordance with section 13.1 of the Income Tax Act, issue a tax credit certificate in the amount referred to in subsection (1), unless the administrator considers that the corporation or its directors, officers or shareholders are conducting the business or affairs of the corporation in a manner that is contrary to the spirit and intent of this Act whether or not there has been a contravention of this Act or the regulations.
Section 7 (2.1) was added by 2004-51-11(c), effective October 16, 1997 [retro from May 20, 2004 (Royal Assent)].
Section 7 (3) BEFORE amended by 2004-51-11(d), effective October 16, 1997 [retro from May 20, 2004 (Royal Assent)].
(3) The administrator must not issue a tax credit certificate under subsection (2) unless the administrator is satisfied that
Section 7 (3) (d) BEFORE repealed by 2004-51-11(e), effective October 16, 1997 [retro from May 20, 2004 (Royal Assent)].
(d) the amount of the entitlement under subsection (1) takes into account any shares of the corporation that the employee shareholder disposed of within the immediately preceding 2 years,
Section 7 (3) (g) BEFORE amended by 2004-51-11(f), effective October 16, 1997 [retro from May 20, 2004 (Royal Assent)].
(g) the sum of the shareholder's aggregate entitlements in respect of all tax credit certificates applied for in the year is $2 000 or less, and
Section 9 (c) and (f) BEFORE amended by 2003-70-135, effective March 29, 2004 (BC Reg 64/2004).
(c) has a name that includes "(EVCC)" immediately before the word or abbreviation required by section 16 (1) of the Company Act,
(f) has authorized capital consisting of shares without par value,
Section 10 (1) (k) BEFORE amended by 2002-39-3, effective May 30, 2002 (Royal Assent).
(k) that share transactions under paragraph (i) may be governed by limits set out in the plan if those limits
(i) are based on a reasonable test of ability to pay, and
(ii) give priority to hardship dispositions;
Section 12 BEFORE amended by 2003-4-3, effective March 12, 2003 (Royal Assent).
Limits on equity capital
12 (1) The equity capital of an employee venture capital corporation, including the equity capital referred to in section 14, must not exceed
(a) $5 million if it is not a reporting issuer as defined in the Securities Act, or
(b) $20 million if it is a reporting issuer as so defined.
(2) If the Lieutenant Governor in Council considers it to be in the public interest, the Lieutenant Governor in Council may by order and with or without conditions, in a particular case, exempt an employee venture capital corporation from the limits of equity capital set out in subsection (1) and specify other limits that are to apply in that particular case.
Section 13 BEFORE amended by 2002-39-4, effective May 30, 2002 (Royal Assent).
13 (1) An employee venture capital corporation must have an amount equal to 80% of any equity capital it has raised during its fiscal year invested in eligible investments no later than the end of the next succeeding fiscal year, and the employee venture capital corporation must afterwards keep at least that amount invested in eligible investments.
(2) For the purposes of subsection (1), the amount invested in eligible investments must be determined using the cost, determined in the prescribed manner, of the investment.
Section 15 (2) BEFORE amended by 2002-39-5, effective May 30, 2002 (Royal Assent).
(2) If an eligible security acquired as an eligible investment under subsection (1) is converted or exchanged for another eligible security of the same investee business or an affiliate or associate of the investee business, the eligible security acquired on the conversion or exchange is an eligible investment.
Section 17 (1) (a) BEFORE amended by 2003-4-4, effective March 12, 2003 (Royal Assent).
(a) 50% of the shares carrying votes for the election of directors of the eligible business are owned, directly or indirectly, by, or
Section 19 (1) BEFORE amended by 2003-4-5, effective March 12, 2003 (Royal Assent).
(1) An employee venture capital corporation must not make or hold an investment in an eligible business if, as a result of that investment, the aggregate of all amounts received directly or indirectly by that eligible business from the employee venture capital corporation, any other employee venture capital corporations and any venture capital corporations registered under the Small Business Venture Capital Act, would exceed $5 million within a 2 year period.
Section 19 (1) and (2) BEFORE amended by 2004-51-12, effective May 20, 2004 (Royal Assent).
(1) An employee venture capital corporation must not make or hold an investment in an eligible business if, as a result of that investment, the aggregate of all amounts received directly or indirectly by that eligible business from the employee venture capital corporation would exceed $5 million within a 2 year period.
(2) Subsection (1) does not apply if the amount that the eligible business receives in excess of $5 million within a 2 year period is an investment made or held by an employee venture capital corporation that
Section 23 (3) BEFORE amended by 2003-4-6, effective March 12, 2003 (Royal Assent).
(3) If
(a) the administrator certifies that money is payable to the Crown under section 31 or 32, and
(b) there is money in the investment protection account to pay all or part of the amount payable,
the money must be paid to the Minister of Finance and Corporate Relations.
Section 23 (2) (d) BEFORE amended by 2004-51-13, effective August 28, 2000 [retro from May 20, 2004 (Royal Assent)].
(d) 50% of the amount paid or to be paid for the eligible investment;
Section 24 (2) BEFORE amended by 2003-4-7, effective March 12, 2003 (Royal Assent).
(2) On receipt of an application under subsection (1), the administrator must, subject to subsection (3), following the approval of the Minister of Finance and Corporate Relations and in accordance with section 13.1 of the Income Tax Act, issue a tax credit certificate in the amount referred to in subsection (1), unless the administrator considers that the corporation or its directors, officers or shareholders are conducting the business or affairs of the corporation in a manner that is contrary to the spirit and intent of this Act whether or not there has been a contravention of this Act or the regulations.
Section 24 (2) BEFORE amended by 2004-51-14(a), effective October 16, 1997 [retro from May 20, 2004 (Royal Assent)].
(2) On receipt of an application under subsection (1), the administrator must, subject to subsection (3), following the approval of the minister responsible for the administration of the Income Tax Act and in accordance with section 13.1 of the Income Tax Act, issue a tax credit certificate in the amount referred to in subsection (1), unless the administrator considers that the corporation or its directors, officers or shareholders are conducting the business or affairs of the corporation in a manner that is contrary to the spirit and intent of this Act whether or not there has been a contravention of this Act or the regulations.
Section 24 (2.1) was added by 2004-51-14(b), effective October 16, 1997 [retro from May 20, 2004 (Royal Assent)].
Section 24 (3) BEFORE amended by 2004-51-14(c), effective October 16, 1997 [retro from May 20, 2004 (Royal Assent)].
(3) The administrator must not issue a tax credit certificate under subsection (2) unless the administrator is satisfied that
Section 24 (3) (f) BEFORE amended by 2004-51-14(d), effective October 16, 1997 [retro from May 20, 2004 (Royal Assent)].
(f) the sum of the shareholder's aggregate entitlements in respect of all tax credit certificates applied for in the year is $2 000 or less, and
Section 25 BEFORE amended by 2003-70-136, effective March 29, 2004 (BC Reg 64/2004).
Despite the Company Act, an employee venture capital corporation, subject to its memorandum and articles,
Section 26 (5) (b) BEFORE amended by 2003-70-137, effective March 29, 2004 (BC Reg 64/2004).
(b) the amount by which paid up capital in respect of those shares is reduced under section 233 of the Company Act.
Section 28 (1) and (3) BEFORE amended by 2003-4-8, effective March 28, 2003 (BC Reg 114/2003).
(1) A corporation that meets the requirements of section 3 or 15 (1) (a) to (e) and that has not more than 150 employees, calculated in the prescribed manner, and an employee group, may each apply in a form and manner satisfactory to the administrator for reimbursement, in accordance with subsection (2), of their costs relating to the negotiation, evaluation and implementation of an employee share ownership plan or employee venture capital plan.
(3) Only one application for each corporation and employee group may be approved by the administrator in any 2 year period.
Section 30 BEFORE re-enacted by 2002-39-6, effective May 30, 2002 (Royal Assent).
30 (1) The Lieutenant Governor in Council may, in respect of any year, prescribe an amount to be known as the annual maximum employee investment tax credit.
(2) The administrator must register a plan only if he or she is satisfied that the amounts that will be deductible or deducted under section 13.1 of the Income Tax Act during a particular year will not exceed the annual maximum employee investment tax credit for that year.
Section 31 (3) BEFORE amended by 2002-39-7, effective May 30, 2002 (Royal Assent).
(3) Subsection (2) does not apply if
(a) the disposition is a trust disposition,
(b) the disposition is a hardship disposition,
(c) the shares disposed of were acquired by the shareholder under a hardship disposition, or
(d) a tax credit repayment under subsection (2) had previously been made in respect of the shares disposed of.
Section 31 (1) and (2) BEFORE amended by 2003-4-6, effective March 12, 2003 (Royal Assent).
(1) If a person receives, directly or indirectly, the benefit of all or part of a tax credit in respect of which the person is not entitled, the person must immediately pay the amount of the benefit to the Minister of Finance and Corporate Relations.
(2) Subject to subsection (3), a shareholder who disposes of shares in respect of which a tax credit was allowed under section 13.1 of the Income Tax Act, must repay or cause to be repaid to the Minister of Finance and Corporate Relations an amount equal to the tax credits allowed in respect of those shares under section 13.1 of the Income Tax Act or a lesser amount determined under the regulations in prescribed circumstances
(a) if the shares were issued under an employee share ownership plan and the disposition is made within 3 years after the date of the issue of the shares, or
(b) if the shares were issued under an employee venture capital plan and the disposition is made within 5 years after the date of the issue of the shares.
Section 40 (3) BEFORE amended by 2003-4-6, effective March 12, 2003 (Royal Assent).
(3) An amount required to be paid to the Minister of Finance and Corporate Relations under this Act is a debt due to the Crown.
Section 40 (6) (a) BEFORE amended by 2004-51-15, effective March 12, 2003 [retro from May 20, 2004 (Royal Assent)].
(a) under section 7 to each eligible employee who purchases equity shares under the employee share ownership plan, equal in aggregate to 20% of the amount paid by the eligible employee for the shares, but not exceeding $2 000 per year and $10 000 in aggregate, or
Section 40 (2) BEFORE amended by 2007-14-215,Sch, effective December 1, 2007 (BC Reg 354/2007)
(2) A calculation or determination under this Act or the regulations may be based on projections that the administrator considers to be appropriate.
Section 42 (1) (a) BEFORE amended by 2007-14-215,Sch, effective December 1, 2007 (BC Reg 354/2007)
(a) makes a statement in any record, report, return, application, form or other document or information filed or furnished under this Act or the regulations to the administrator or to a person conducting an examination, inquiry or investigation under section 36 that, at the time and in the light of the circumstances under which the statement is made, is false or misleading with respect to a material fact or that omits to state a material fact, the omission of which makes that statement false or misleading;
Section 44 (2) (d) and (3) BEFORE amended by 2007-14-215,Sch, effective December 1, 2007 (BC Reg 354/2007).
(d) establishing periods of time to be taken into account in calculations or determinations under this Act or the regulations, and varying periods set by this Act;
(3) The administrator may, by order, extend the time limit for doing anything under this Act or the regulations, and may grant the extension even if the time limit to be extended has expired.
Section 44 (5) BEFORE amended by 2008-39-51, effective April 1, 2009 (BC Reg 409/2008).
(5) The Lieutenant Governor in Council may, if the Lieutenant Governor in Council considers it in the public interest to do so and with or without conditions, order, in respect of a particular employee venture capital plan, that any or all of sections 9 (a) to (d) and (g) (ii), 10 (1) (e), 11 and 13 do not apply.