Beacroft, Laura; Piper, Sayuri --- "ORATSIC and the CATSI Act" [2007] IndigLawB 54; (2007) 6(30) Indigenous Law Bulletin 19

^[1] In accordance with the Racial Discrimination Act 1975 (Cth) and supporting international law.

^[2] There were four recommendations that were not implemented: that membership should be limited to Indigenous people and their dependants; that corporate membership should not be allowed; that the Registrar’s power to appoint an administrator be removed; and that the Registrar should no longer play a role in approving the constitution of corporations. For more information about why these recommendations were not reflected in the CATSI Act, see our fact sheet on the Act and the review at <http://www.oratsic.gov.au/publications/review_of_the_act/factsheet_the-bill-and-the-review_feb2006.aspx> .

^[3] Commonwealth of Australia Constitution Act (Cth) s 51(xxvi).

^[4] Corporations (Aboriginal and Torres Strait Islander) Act 2006 (Cth) (‘CATSI Act’) s 658-1.

^[5] CATSI Act s 29-5. The percentage prescribed in this provision is 51 per cent (see Corporations (Aboriginal and Torres Strait Islander) Regulations 2006 (Cth) (‘CATSI Regulations’) reg 29-5.01).

^[6] CATSI Act s 141-15.

^[7] CATSI Act s 246-1(1).

^[8] CATSI Act s 158-5(2).

^[9] Before the start of the CATSI Act, directors were called governing committee members and were only able to be elected from the membership of the corporation. The CATSI Act now enables a corporation to appoint a person as a director by passing a resolution in a general meeting. This is a replaceable rule: CATSI Act s 246-15.

^[10] CATSI Act Division 166.

^[11] CATSI Act s 169-1.

^[12] CATSI Act s 175-1.

^[13] CATSI Act s 700-1.

^[14] CATSI Act Division 290. This Division identifies how to obtain member approval for related party transactions. The corporation must lodge the documents that will be put to the members with the Registrar. This includes the proposed notice of meeting (which has the text of the proposed resolution), an explanatory statement in accordance with section 290-10 and any other accompanying documentation. The Registrar can comment on the proposed resolution: section 290-15.

^[15] CATSI Act s 287-1(2).

^[16] CATSI Act s 287-12.

^[17] The Registrar registers Aboriginal and Torres Strait Islander corporations as small, medium or large under section 37-1 of the CATSI Act. Under section 37-20 of the CATSI Act, the thresholds are deferred to the CATSI Regulations at Division 29. This is to enable the thresholds to be more easily changed if they are not appropriate.

^[18] The Registrar has the power to grant exemptions from reporting requirements either on application or by the Registrar’s own initiative. Exemptions in relation to reporting are in Division 353 of the CATSI Act.

^[19] ‘Funding body’ includes Commonwealth, state and territories and some body corporations established by a law of the Commonwealth, state or territory: CATSI Regulations subdivision 333-B.

^[20] CATSI Act s 57-1.

^[21] CATSI Act s 57-5.

^[22] CATSI Act s 66-1(3A): ‘The corporation’s constitution must provide for the resolution of disputes internal to the operation of the corporation.’

^[23] See note 5.99 of the Explanatory Memoranda for the Corporations (Aboriginal and Torres Strait Islander) Bill 2006 (Cth).

^[24] See the definition of officer the CATSI Act s 683-1: ‘A person is an officer of an Aboriginal and Torres Strait Islander corporation if: (a) the person is a director or secretary of the corporation; or (b) a person (i) makes, or participates in making, decisions that affect the whole, or a substantial part, of the business of the corporation; or (ii) has the capacity to affect significantly the corporation’s financial standing; or…’ and so on.

^[25] CATSI Act s 265-1: note that this civil obligation is subject to the business judgment rule, which is defined at section 265-1(3).

^[26] CATSI Act ss 265-5 and 265-25.

^[27] CATSI Act ss 265-10, 265-15, 265-25.

^[28] CATSI Act s 268-1.

^[29] CATSI Act Division 531.

^[30] CATSI Act ss 466-1(b).

^[31] CATSI Act ss 469-5.

^[32] CATSI Act ss 472-1(2).

^[33] CATSI Act s 268-5.