The act defines 'Community Corporation (CC)' as a new business type whereby an Exterrisian may submit a business case to meet a particular demand.
1. Establishment Criteria: Should the Department of Industry Affairs attest that such a business would be beneficial to Exterrisian society and the wider economy, an establishment agreement between the Department and the applicant will be drafted. Upon finalization, the agreement will establish the business with the applicant as the Cheif Executive. The applicant is free to appoint whoever they see fit to Corporate leadership so that the business may perform at its best.
2. Ownership: In keeping with our proud Socialist ideals, the Government will retain sole ownership over the business and will provide any investment which the applicant themselves cannot afford. As the owner of the business, the Government may also restructure Corporate leadership should the business fail to meet the goals outlined in the business case. If the business fails to satisfy the criteria outlined in the establishment agreement, the Government may also choose to disband the business.
3. Taxation: Community Corporations will all be subject to standard taxation equivalent to the current national rate, however, the Government may offer tax subsidies for businesses that assist the Government or are struggling financially. All after-tax net profits earned by Community Corporations must be invested directly into the business, and the Government may seek additional dividends from businesses that retain a significant portion of their current assets in cash.
4. Foreign Involvement: Foreign Corporations may also enter the Exterrisian market through a Community Corporation, so long as the Corporation is founded in conjunction with an Exterrisian citizen/firm. Foreign Corporations will not be allowed direct access to profits from CC subsidiaries. Rather, local Community Corporations may provide compensation for licensed Intellectual Property at fair market value as determined by the Department of Industry Affairs. All other profits are subject to the same reinvestment requirements as locally-owned CC entities. In the event which a Foreign Corporation breaches Exterrisian law through a CC subsidiary, said Foreign Corporation is directly liable and will be pursued by the Department of Justice so long as jurisdiction allows.
5. Benefits: This act will allow for small businesses such as local restaurants to be delegated to locals themselves, reducing the planning complexity for the greater economy so that the Department of Industry Affairs may focus on larger industries. Larger businesses - including those which compete with state-operated entities - may also exist as Community Corporations, however, these will be subject to more stringent criteria in their establishment agreements and may be regulated directly by the Government. As a result, increased competition within the socialist system will serve to grow Exterris' economy while retaining our firm-held beliefs.