CORPORATIONS (ABORIGINAL AND TORRES STRAIT ISLANDER) ACT 2006 - SECT 172.10 Variation, cancellation or modification without unanimous support of class

CORPORATIONS (ABORIGINAL AND TORRES STRAIT ISLANDER) ACT 2006 - SECT 172.10

  (1)   If members in a class of members of an Aboriginal and Torres Strait Islander corporation do not all agree (whether by resolution or written consent) to:

  (a)   a variation or cancellation of their rights; or

  (b)   a modification of the corporation's constitution (if any) to allow their rights to be varied or cancelled;

members with at least 10% of the votes in the class may apply to the Court to have the variation, cancellation or modification set aside.

  (2)   An application may only be made within 28 days after the variation, cancellation or modification is made.

  (3)   The variation, cancellation or modification takes effect:

  (a)   if no application is made to the Court to have it set aside--28 days after the variation, cancellation or modification is made; or

  (b)   if an application is made to the Court to have it set aside--when the application is withdrawn or finally determined.

  (4)   The members of the class who want to have the variation, cancellation or modification set aside may appoint one or more of themselves to make the application on their behalf. The appointment must be in writing.

  (5)   The Court may set aside the variation, cancellation or modification if it is satisfied that it would unfairly prejudice the applicants. However, the Court must confirm the variation, cancellation or modification if the Court is not satisfied of unfair prejudice.

  (6)   Within 14 days after the Court makes an order, the corporation must lodge a copy of the order with the Registrar.

  (7)   The corporation commits an offence if it contravenes subsection   (6).

Penalty:   5 penalty units.

  (8)   An offence against subsection   (6) is an offence of strict liability.

Note:   For strict liability , see section   6.1 of the Criminal Code .