CATSI Act Review Phase 2 Consultation - Final week

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CATSI Act Review Phase 2 Consultation - Final week

Phase 2 consultation: the final week is coming up

The consultation period for the review of the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (CATSI Act) being led by the National Indigenous Australians Agency (NIAA) closes on 21 September 2020.

While this review takes into account previous reviews of ORIC and the CATSI Act, the scope is broader than previous reviews. I encourage you to get involved—the CATSI Act has a direct impact on you and your corporation so it’s important you understand what changes are being proposed and how they might affect you.

 

Feedback from the NIAA review team

A recurring theme during consultations is tension between increasing transparency for members without over-burdening corporations with extra complexity and administration. Examples include:

  • transparency around remuneration for senior executives was welcomed, however some of the proposals in the draft report added complexity for corporations while not necessarily achieving the stated intention
  • in the case of RNTBCs, allowing members to have self-determination and authority in managing their corporation was weighed against additional reporting on native title benefits.

Another suggestion was that some proposed changes may better implemented by encouraging corporations to make changes within their own rule books rather than legislative amendment.

 Next week’s consultation sessions being run by NIAA

Unclaimed money account

When a corporation is deregistered any remaining property or assets are vested in the Registrar—they are held in the unclaimed money account for six years. Should the CATSI Act be changed to allow the Registrar to use the funds to maintain and protect the property and assets held?

Read the unclaimed money account fact sheet

  • Monday, 14 September, 10:00am–10:30am (0.5 hour)
  • Monday, 14 September, 2:30pm–3:00pm (0.5 hour)

Governance

Should members’ addresses be visible on the corporation’s register? Are the processes for deciding membership applications and cancelling memberships appropriate? What types of corporate structures do you need to pursue economic growth or fulfill your purpose? Do corporation size classifications need changing? Should small corporations be allowed to meet with members less frequently? Should corporations present their reports to members at their AGM? Are rule books comprehensive and working effectively?

Read the governance fact sheet

  • Monday, 14 September, 11:30am–1:00pm AEST (1.5 hours)

General—Participants lead the discussion!

  • Tuesday, 15 September, 9:30am–11:00am AEST (1.5 hours)

Modernising the CATSI Act

 Do you think the Registrar should be able to share corporation information with researchers, peak bodies, academics and other stakeholders? Should the CATSI Act be changed to enable the Registrar to contact people and corporations using social media or other digital channels? Should corporations be allowed to store their information on cloud servers? If a corporation tells ORIC a director’s phone number has changed, should the update be made across all directorship records for that person? Should whistleblower protection be expanded? Do financial reporting requirements need clarification? Should auditors have qualified privilege under the CATSI Act too?

Read the modernising the CATSI Act fact sheet

  • Tuesday, 15 September, 1:00pm–2:30pm AEST (1.5 hours)
  • Wednesday, 16 September, 1:00pm–2:00pm AEST (1 hour)

Native title and RNTBCs

When a corporation is prescribed under a native title determination it takes on a very important set of responsibilities and obligations to look after the native title rights and interests of the common law holders. Currently, many native title trust structures, land use agreements and royalty payments fall outside the regulation of ORIC. Consequently, ORIC receives a large number of complaints about these structures, their transparency and accountability with limited or no powers to intervene, as these complaints and disputes do not relate to their obligations to members of the corporation under the CATSI Act. ORIC agrees with general concerns of stakeholders, particularly common law holders of native title, that there is a need for greater transparency and accountability in decision-making, and recording of and reporting about receipt and expenditure of monies derived from native title.

What ideas do you have for helping common law holders receive better information about native title benefits and money? Who should common law holders ask for help if there are issues about native title decisions?

Read the RNTBC fact sheet

  • Wednesday, 16 September, 10:00am–11:30am AEST (1.5 hours)
  • Thursday, 17 September, 12:00pm–1:00pm AEST (1 hour)

Special administration, winding up and insolvency

 Special administration is a unique form of regulatory action intended to create a positive outcome for a corporation and its members. But some people mistakenly associate it with voluntary administration under the Corporations Act 2001 and become concerned that the corporation is insolvent. Can you think of a different name for the process so people recognise a corporation is receiving significant support to prepare it for a strong future?

Some corporations ask us to appoint special administrators but we still have to follow the steps in the ‘show cause’ process when this happens. Should we and how can we streamline the appointment process for cases when there is a unanimous request from a board?

When a corporation becomes insolvent, if nothing is done to improve it, the court can decide to wind it up—but it can be a long and difficult process. What ideas do you have to make the process easier without compromising the chance for a corporation to address solvency problems and get things back on track?

Sometimes corporations reach their end goal or are no longer required. This is a normal part of the corporate lifecycle. Under the CATSI Act, every single member of a corporation needs to agree to voluntarily deregister it. This can be difficult when members may have lost interest and contact. Do you agree we should make the deregistration process easier?

Read the special administration, winding up and insolvency fact sheet

  • Friday, 18 September, 10:00am–11:30am AEST (1.5 hours)
  • Friday, 18 September, 1:00pm–2:00pm AEST (1 hour)

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Participate in other ways

Read the NIAA’s CATSI Act Review Draft Report and fact sheets then:

o   complete the online surveys for each chapter of the report

o   write a submission and either upload it to the NIAA webpage or email it to CATSIActReview@niaa.gov.au

o   provide general feedback on the NIAA webpage

o   ask the review team for an individual discussion

If you’ve got questions about the review please email the CATSIActReview@niaa.gov.au.

Yours sincerely

Selwyn Button

Registrar of Indigenous Corporations

 

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