CPABC in Focus September/ October 2015 | Page 38

The new Act will provide greater flexibility by permitting societies to keep their records in any format that enables the records to be inspected and copied. It will also allow for different people to have different inspection rights. Public disclosure of remuneration The new Act will require societies to disclose the remuneration, if any, paid to its directors and to its 10 highest-paid employees and contractors earning over a prescribed amount. This disclosure will have to be made in a note to the society’s annual financial statements, which will be accessible to both the society’s members and the general public. To counterbalance any privacy concerns, the names of the directors, employees, and contractors will not have to be included in the financial statements. Note: The requirements to disclose remuneration information and make financial statements accessible to the public are not applicable to member-funded societies. First Circle Financial offers individuals the opportunity to invest in a diversified mortgage portfolio through its Mortgage Investment Corporation or ‘MIC’. For close to twenty-five years First Circle Financial has delivered consistent and stable returns to its investors. Shares of a MIC are qualified investments under the Income Tax Act for RRSPs, RRIFs, RESPs, and TFSAs. Because of the tax flow-through characteristics, purchasing shares in First Circle MIC makes an excellent choice for retirement savings; they provide a steady and stable investment plus a superior yield to most interest bearing investment options. • • • • • Diversified mortgage portfolio investment opportunity Professional and experienced management Tax flow-through vehicle RRSP, RRIF, RESP, TFSA eligible Audited financial statements 7.24%* 1 year return 7.68%* 5 year return *annual yield, compounded quarterly www.firstcircle.ca 38  CPABC in Focus • Sept/Oct 2015 Inspection of records The new Act will clearly set out the recordkeeping obligations of a society by outlining the records that must be maintained and identifying the individuals who may inspect them. A society will not be obligated to keep a record if 10 years have passed since it was last altered or created and if the record is no longer “relevant.” Aligning with British Columbia’s current corporate legislation, the new Act will provide greater flexibility by permitting a society to keep its records in any format that enables them to be inspected and copied. The new Act will also allow for different people to have different inspection rights; for example, directors may inspect all records without restriction, but a society’s bylaws may restrict members from inspecting certain records. Director’s conflicts of interest Under the current Society Act, a director must disclose any interest in a proposed contract to the other directors; otherwise they could become liable to account for any profits made under the contract. The new Act, however, will clarify that the disclosure obligation applies to any actual or proposed contracts or transactions in which a director has a “material” interest (including a non-pecuniary interest). Under the new Act, the requisite disclosure of a director will have to be documented in the minutes of a directors’ meeting, in a written consent resolution, or in any other written document addressed and mailed to the society’s directors. Finally, the new Act will also prescribe that a director-in-conflict must: abstain from voting on (or consenting to, in the case of a consent resolution) a resolution of directors in respect of the matter; physically leave the directors’ meeting while the matter is being voted on or discussed (unless asked by the other directors to be present to provide information); and refrain from any other action intended to influence the other directors’ discussion or vote. The transition period Once it comes into force, the new Act will contemplate a two-year transition period during which existing societies will be expected to take steps to move to the new Act.