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Corporations (Aboriginal and Torres Strait Islander) Bill 2006

2004-2005

 

The Parliament of the

Commonwealth of Australia

 

HOUSE OF REPRESENTATIVES

 

 

 

 

Presented and read a first time

 

 

 

 

 

 

 

 

 

Corporations (Aboriginal and Torres Strait Islander) Bill 2005

 

No.      , 2005

 

(Immigration and Multicultural and Indigenous Affairs)

 

 

 

A Bill for an Act to provide for Aboriginal and Torres Strait Islander corporations, and for related purposes

 

 

 



Contents

Chapter 1—Introduction                                                                                        2

Part 1-1—Preliminary                                                                                                          2

Division 1—Preliminary                                                                                              2

1-1......... Short title............................................................................................. 2

1-5......... Commencement................................................................................... 2

1-10....... Act binds Crown................................................................................. 2

1-15....... Geographical application of Act.......................................................... 2

1-20....... Act applies regardless of residence, place of formation etc................. 3

1-25....... Objects of this Act.............................................................................. 3

1-30....... Office of the Registrar of Aboriginal and Torres Strait Islander Corporations         3

1-35....... Interpretative provisions...................................................................... 3

Part 1-2—Overview of Act                                                                                                4

Division 6—Overview of Act                                                                                     4

6-1......... Overview of Act................................................................................. 4

6-5......... Aboriginal and Torres Strait Islander corporations............................. 4

6-10....... Basic features of an Aboriginal and Torres Strait Islander corporation 4

6-15....... Members and observers...................................................................... 5

6-20....... Meetings............................................................................................. 5

6-25....... Officers............................................................................................... 5

6-30....... Record keeping, reporting requirements and books............................ 5

6-35....... Civil consequences of contravening civil penalty provisions.............. 6

6-40....... Lodgments and registers..................................................................... 6

6-45....... Regulation and enforcement................................................................ 6

6-50....... External administration........................................................................ 6

6-55....... Deregistration and unclaimed property................................................ 6

6-60....... Offences.............................................................................................. 7

6-65....... Courts and proceedings....................................................................... 7

6-70....... Administration.................................................................................... 7

6-75....... Registrar and Deputy Registrars of Aboriginal and Torres Strait Islander Corporations          7

6-80....... Interpreting this Act............................................................................ 7

Chapter 2—Aboriginal and Torres Strait Islander corporations     8

Part 2-1—Introduction                                                                                                        8

Division 16—Introduction                                                                                           8

16-1....... What this Chapter is about.................................................................. 8

16-5....... Meaning of Aboriginal and Torres Strait Islander corporation ......... 8

Part 2-2—Applications for registration of an Aboriginal and Torres Strait Islander corporation          9

Division 21—Applications for registration of an Aboriginal and Torres Strait Islander corporation                                                                                                                         9

21-1....... Application for registration................................................................. 9

21-5....... Matters to accompany application..................................................... 11

21-10..... Registrar may seek further information............................................. 11

Part 2-3—Decisions on applications                                                                           12

Division 26—Registrar to decide application                                                 12

26-1....... Registrar to decide application........................................................... 12

26-5....... Registrar may grant application if application is incomplete etc......... 13

26-10..... Registrar may grant application if some basic requirements are not met 13

26-15..... Registrar not to register trade unions etc........................................... 13

Division 29—What are the basic requirements for registration?       15

29-1....... Minimum number of members requirement...................................... 15

29-5....... Indigeneity requirement..................................................................... 15

29-10..... Age of members requirement............................................................ 15

29-15..... Pre-incorporation requirement........................................................... 15

29-20..... Internal governance rules requirement............................................... 16

29-25..... Name requirement............................................................................. 17

Division 32—Decisions on applications                                                              18

32-1....... Successful applications..................................................................... 18

32-5....... Unsuccessful applications................................................................. 18

Part 2-4—Registration of an Aboriginal and Torres Strait Islander corporation as a small, medium or large corporation                                                                                                20

Division 37—Registration of an Aboriginal and Torres Strait Islander corporation as a small, medium or large corporation                                                                          20

37-1....... Registrar to register Aboriginal and Torres Strait Islander corporation as a small, medium or large corporation     20

37-5....... Registrar may alter registered size of corporation after registration... 21

37-10..... Small, medium and large corporations.............................................. 22

37-15..... When an Aboriginal and Torres Strait Islander corporation controls an entity         23

37-20..... Counting employees.......................................................................... 24

37-25..... Accounting standards........................................................................ 24

Part 2-5—Effects of registration                                                                                  25

Division 42—Effects of registration                                                                    25

42-1....... Corporation comes into existence on registration.............................. 25

42-5....... Corporation’s name........................................................................... 25

42-10..... Members, directors, corporation secretary and contact person of corporation          25

42-15..... Registered office............................................................................... 26

42-20..... Document access address.................................................................. 26

42-25..... Corporation may have common seal................................................. 26

42-30..... Vesting of property in corporation on registration............................ 27

Chapter 3—Basic features of an Aboriginal and Torres Strait Islander corporation                                                                                                                          29

Part 3-1—Introduction                                                                                                      29

Division 52—Introduction                                                                                         29

52-1....... What this Chapter is about................................................................ 29

Part 3-2—Rules dealing with the internal governance of corporations 30

Division 57—Introduction                                                                                         30

57-1....... What this Part is about...................................................................... 30

Division 60—What are the replaceable rules and when do they apply to a corporation?           32

60-1....... Replaceable rules............................................................................... 32

60-5....... Corporation’s constitution can modify or replace replaceable rules... 32

60-10..... Effect of constitution and replaceable rules....................................... 33

60-15..... Failure to comply with replaceable rules........................................... 33

60-20..... Modification by regulations.............................................................. 33

60-25..... List of replaceable rules..................................................................... 33

Division 63—What are the internal governance rules of a corporation?             36

63-1....... Meaning of internal governance rules............................................... 36

Division 66—What are the internal governance rules requirements?    37

66-1....... Requirements.................................................................................... 37

66-5....... Meaning of cover the matters provided for in the replaceable rules . 38

Division 69—Constitutions and amendment and replacement of constitutions                 40

Subdivision 69-A—Constitution on registration                                               40

69-1....... Constitution of an Aboriginal and Torres Strait Islander corporation 40

Subdivision 69-B—Constitutional changes after registration                       40

69-5....... Overview—ways a constitution may be changed.............................. 40

69-10..... Meaning of constitutional change etc................................................ 41

69-15..... Extra requirements for constitutional change in constitution............. 42

69-20..... Corporation to lodge copy of constitutional changes......................... 42

69-25..... Special administrator to lodge copy of constitutional changes........... 43

69-30..... Registrar to determine if constitutional change should be registered. 43

69-35..... Registrar may change an Aboriginal and Torres Strait Islander corporation’s constitution on own initiative           44

69-40..... Date of effect of constitutional change.............................................. 46

Division 72—Other matters concerning constitutions etc.                      47

72-1....... Registrar may direct corporation to lodge constitution...................... 47

72-5....... Corporation must provide governance material to members.............. 47

72-10..... Constitution may limit powers.......................................................... 48

Part 3-3—Minimum number of members of Aboriginal and Torres Strait Islander corporations         49

Division 77—Minimum number of members of Aboriginal and Torres Strait Islander corporations                                                                                                                       49

77-1....... What this Part is about...................................................................... 49

77-5....... Minimum number of members requirement...................................... 49

77-10..... Registrar may exempt if appropriate and reasonable to do so............ 50

77-15..... Registrar may determine a different number to number requested..... 51

77-20..... Earlier determination taken to be revoked.......................................... 51

77-25..... Notice to be given............................................................................. 51

Part 3-4—Names                                                                                                                    52

Division 82—Introduction                                                                                         52

82-1....... What this Part is about...................................................................... 52

Division 85—What names may a corporation have?                                53

85-1....... Corporation’s name requirements..................................................... 53

85-5....... Available names................................................................................ 54

85-10..... Acceptable abbreviations................................................................... 55

85-15..... Using a name and ICN on documents............................................... 56

85-20..... Exception to requirement to have ICN on receipts............................ 57

85-25..... Regulations may exempt from requirement to set out information on documents     57

Division 88—How is a corporation’s name changed?                               58

88-1....... Corporation changing its name.......................................................... 58

88-5....... Registrar’s power to direct corporation to change its name............... 58

88-10..... If Aboriginal and Torres Strait Islander corporation becomes a registered native title body corporate     59

88-15..... If Aboriginal and Torres Strait Islander corporation ceases to be a registered native title body corporate                60

88-20..... Registrar must issue new certificate if name changes........................ 60

88-25..... Effect of name change....................................................................... 61

Part 3-5—Corporation powers and how they are exercised                      62

Division 93—Introduction                                                                                         62

93-1....... What this Part is about...................................................................... 62

Division 96—What are a corporation’s powers?                                         63

96-1....... Legal capacity and powers................................................................ 63

Division 99—How are a corporation’s powers exercised?                     64

99-1....... Agent exercising a corporation’s power to make contracts etc.......... 64

99-5....... Execution of documents (including deeds) by the corporation itself. 64

Part 3-6—Assumptions people dealing with Aboriginal and Torres Strait Islander corporations are entitled to make                                                                                                   66

Division 104—Assumptions people dealing with Aboriginal and Torres Strait Islander corporations are entitled to make                                                                                    66

104-1..... Entitlement to make assumptions...................................................... 66

104-5..... Assumptions that can be made under section 104-1.......................... 67

104-10... Information available to the public from Registrar does not constitute constructive notice       69

Part 3-7—Registered office or document access address                             70

Division 109—Introduction                                                                                      70

109-1..... What this Part is about...................................................................... 70

Division 112—Registered office                                                                             71

112-1..... General.............................................................................................. 71

112-5..... Corporation to have registered office................................................ 71

112-10... Registrar may change address of registered office to a director’s address                72

112-15... Corporation’s name must be displayed............................................. 73

112-20... Address of registered office etc......................................................... 73

Division 115—Document access address                                                          75

115-1..... Division applies to Aboriginal and Torres Strait Islander corporations registered as small or medium corporations.......................................................................................................... 75

115-5..... Corporation to have document access address.................................. 75

115-10... Registrar may change document access address to a director’s address 76

115-15... Registrar may direct corporation to change the location of its document access address          77

115-20... Address of document access address................................................ 77

Part 3-8—Service on Aboriginal and Torres Strait Islander corporations              79

Division 120—Service on Aboriginal and Torres Strait Islander corporations                79

120-1..... Service on Aboriginal and Torres Strait Islander corporation........... 79

Chapter 4—Members and observers                                                        81

Part 4-1—Introduction                                                                                                      81

Division 130—Introduction                                                                                      81

130-1..... What this Chapter is about................................................................ 81

Part 4-2—Members                                                                                                              82

Division 135—Introduction                                                                                      82

135-1..... What this Part is about...................................................................... 82

Division 138—Who is a member of an Aboriginal and Torres Strait Islander corporation?   83

138-1..... Meaning of member .......................................................................... 83

Division 141—Membership of Aboriginal and Torres Strait Islander corporations      84

Subdivision 141-A—Introduction                                                                         84

141-1..... Overview.......................................................................................... 84

Subdivision 141-B—Ongoing requirements relating to membership that are imposed on an Aboriginal and Torres Strait Islander corporation                                                       84

141-5..... Minimum number of members requirement...................................... 84

141-10... Indigeneity requirement..................................................................... 84

141-15... Age of members requirement............................................................ 85

Subdivision 141-C—A person’s eligibility for membership of an Aboriginal and Torres Strait Islander corporation                                                                                                          85

141-20... Eligibility for membership................................................................. 85

141-25... Corporation may have other eligibility requirements for membership 86

Division 144—How to become a member of an Aboriginal and Torres Strait Islander corporation   87

144-1..... How does a person become a member?............................................ 87

144-5..... Application to corporation................................................................. 87

144-10... Determination of applications for membership.................................. 87

144-15... Fees for membership and being an observer..................................... 89

Division 147—Obligations of members                                                             90

147-1..... Obligation to contribute on winding up............................................. 90

147-5..... Corporation may impose other member obligations.......................... 90

147-10... Liability of corporation members...................................................... 90

Division 150—How does a person cease to be a member of an Aboriginal and Torres Strait Islander corporation?                                                                                          91

Subdivision 150-A—General                                                                                  91

150-1..... Cessation of membership.................................................................. 91

150-5..... Resolution of disputes....................................................................... 91

Subdivision 150-B—Resignation of membership                                             92

150-10... Resignation....................................................................................... 92

Subdivision 150-C—Cancellation of membership                                            92

150-15... General.............................................................................................. 92

150-20... Member not eligible for membership etc. (replaceable rule—see section 60-1)        93

150-25... Member not contactable.................................................................... 95

150-30... Member is not an Aboriginal and Torres Strait Islander person........ 96

150-35... Member misbehaves......................................................................... 97

Division 153—Can there be different classes of members?                   98

153-1..... Different classes of members............................................................ 98

Part 4-3—Observers                                                                                                            99

Division 158—Observers                                                                                           99

158-1..... What this Part is about...................................................................... 99

158-5..... Observers.......................................................................................... 99

Part 4-4—Protection of members’ interests                                                        101

Division 163—Rights and remedies to protect interests of members 101

163-1..... Rights and remedies........................................................................ 101

Division 166—Oppressive conduct of affairs                                               102

166-1..... Grounds for Court order................................................................. 102

166-5..... Orders the Court can make.............................................................. 102

166-10... Who can apply for an order?........................................................... 104

166-15... Requirement for person to lodge order............................................ 104

Division 169—When may a person bring or intervene in proceedings on behalf of an Aboriginal and Torres Strait Islander corporation?                                       105

169-1..... Bringing, or intervening in, proceedings on behalf of a corporation 105

169-5..... Applying for and granting leave...................................................... 106

169-10... Substitution of another person for the person granted leave............ 107

169-15... Effect of ratification by members.................................................... 108

169-20... Leave to discontinue, compromise or settle proceedings brought, or intervened in, with leave                109

169-25... General powers of the Court........................................................... 109

169-30... Power of the Court to make costs orders........................................ 110

Division 172—What protections apply to variations or cancellations of class rights? 111

172-1..... Varying and cancelling class rights................................................. 111

172-5..... Certain actions taken to vary rights etc............................................ 112

172-10... Variation, cancellation or modification without unanimous support of class            112

172-15... Variation, cancellation or modification with unanimous support of class 113

Division 175—When may a member inspect a corporation’s books? 114

175-1..... Order for inspection of books of corporation.................................. 114

175-5..... Ancillary orders.............................................................................. 115

175-10... Disclosure of information acquired in inspection............................ 115

175-15... Corporation or directors may allow member to inspect books (replaceable rule—see section 60-1)        116

Part 4-5—Registers of members and former members                               117

Division 180—Registers of members and former members                117

180-1..... Aboriginal and Torres Strait Islander corporations to maintain register of members                117

180-5..... Information on the register of members.......................................... 117

180-10... Aboriginal and Torres Strait Islander corporations to maintain register of former members    118

180-15... Information on the register of former members............................... 118

180-20... Location and inspection of registers................................................ 118

180-25... Right to inspect and get copies........................................................ 119

180-30... Aboriginal and Torres Strait Islander corporation to make register of members available at AGM          120

180-35... Aboriginal and Torres Strait Islander corporation to give Registrar copy of register of members            120

180-40... Correction of register of members................................................... 121

180-45... Evidentiary value of registers.......................................................... 121

Division 183—Use of information on the register of members          122

183-1..... Use of information on register........................................................ 122

Chapter 5—Meetings                                                                                              124

Part 5-1—Introduction                                                                                                    124

Division 193—Introduction                                                                                    124

193-1..... What this Chapter is about.............................................................. 124

Part 5-2—General meetings                                                                                          125

Division 198—Introduction                                                                                    125

198-1..... What this Part is about.................................................................... 125

Division 201—What are the rules concerning general meetings?    126

Subdivision 201-A—Who may call general meetings?                                 126

201-1..... Director may call meetings (replaceable rule—see section 60-1)..... 126

201-5..... Request by members for directors to call general meetings............. 126

201-10... When must directors comply with members’ request?.................... 127

201-15... When must a requested meeting be held?........................................ 128

Subdivision 201-B—How to call general meetings                                         128

201-20... Amount of notice of general meetings............................................. 128

201-25... Notice of general meeting to members, officers and observers....... 129

201-30... Auditor entitled to notice and other communications....................... 131

201-35... Contents of notice of general meeting............................................. 131

Subdivision 201-C—Members’ rights to put resolutions etc. to general meeting            132

201-40... Members’ resolutions..................................................................... 132

201-45... Notice of members’ resolutions...................................................... 133

201-50... Members’ statements to be distributed............................................ 133

Subdivision 201-D—Holding general meetings                                               135

201-55... Purpose........................................................................................... 135

201-60... Time and place for general meeting................................................. 135

201-65... Technology..................................................................................... 135

201-70... Quorum........................................................................................... 135

201-75... Chairing general meeting (replaceable rule—see section 60-1)....... 136

201-80... Auditor’s right to be heard at general meetings............................... 137

201-85... Adjourned meetings........................................................................ 137

Subdivision 201-E—Proxies                                                                                 138

201-90... Who may appoint a proxy (replaceable rule—see section 60-1)...... 138

201-95... Rights of proxies............................................................................. 138

201-100. Appointing a proxy......................................................................... 139

201-105. Proxy documents............................................................................ 141

201-110. Body corporate representative......................................................... 141

Subdivision 201-F—Voting at general meetings                                             142

201-115. How many votes a member has (replaceable rule—see section 60-1) 142

201-120. Objections to right to vote (replaceable rule—see section 60-1)...... 142

201-125. How voting is carried out (replaceable rule—see section 60-1)...... 143

201-130. Matters on which a poll may be demanded..................................... 143

201-135. When a poll is effectively demanded............................................... 143

201-140. When and how polls must be taken (replaceable rule—see section 60-1) 144

Subdivision 201-G—First general meeting and annual general meetings 144

201-145. Corporation must hold first general meeting within 3 months of registration           144

201-150. Corporation must hold AGM.......................................................... 145

201-155. Extension of time for holding AGM............................................... 145

201-160. Business of AGM........................................................................... 146

201-165. Questions and comments by members on corporation management at AGM          146

201-170. Questions by members of auditors at AGM................................... 146

Division 204—Resolutions without a general meeting                            147

204-1..... Circulating resolutions.................................................................... 147

204-5..... Resolutions of 1 member corporations............................................ 148

Part 5-3—Directors’ meetings                                                                                     149

Division 209—Introduction                                                                                    149

209-1..... What this Part is about.................................................................... 149

Division 212—What are the rules concerning directors’ meetings? 150

212-1..... Constitution to provide for meetings............................................... 150

212-5..... Calling directors’ meetings (replaceable rule—see section 60-1).... 150

212-10... Use of technology........................................................................... 150

212-15... Chairing directors’ meetings (replaceable rule—see section 60-1).. 150

212-20... Quorum at directors’ meetings........................................................ 151

212-25... Passing of directors’ resolutions (replaceable rule—see section 60-1) 151

Division 215—Resolutions and declarations without meetings           152

215-1..... Circulating resolutions of corporation with more than 1 director (replaceable rule—see section 60-1)    152

215-5..... Resolutions and declarations of 1 director corporation.................... 152

Part 5-4—Minutes of meetings                                                                                    154

Division 220—Minutes of meetings                                                                    154

220-1..... What this Part is about.................................................................... 154

220-5..... Minutes........................................................................................... 154

220-10... Members’ access to minutes........................................................... 156

Part 5-5—Exemption from operation of this Chapter                                 158

Division 225—Exemption from operation of this Chapter                   158

225-1..... What this Part is about.................................................................... 158

225-5..... Exemption from the provisions of this Chapter............................... 158

225-10... Registrar may make determination even if application is incomplete 159

225-15... Registrar’s power to make class determinations.............................. 159

225-20... Criteria for determinations............................................................... 160

Chapter 6—Officers                                                                                                 161

Part 6-1—Introduction                                                                                                    161

Division 235—Introduction                                                                                    161

235-1..... What this Chapter is about.............................................................. 161

Part 6-2—Appointment, remuneration and cessation of appointment of directors           162

Division 240—Introduction                                                                                    162

240-1..... What this Part is about.................................................................... 162

Division 243—Number of directors                                                                   163

243-1..... Minimum number of directors........................................................ 163

243-5..... Maximum number of directors........................................................ 163

Division 246—Appointment of directors                                                        164

246-1..... Eligibility for appointment as a director........................................... 164

246-5..... Majority of director requirements.................................................... 164

246-10... Consent to act as director................................................................ 165

246-15... Corporation may appoint a director (replaceable rule—see section 60-1) 165

246-20... Directors may appoint other directors to make up a quorum (replaceable rule—see section 60-1)           165

246-25... Term of appointment....................................................................... 166

246-30... Alternate directors (replaceable rule—see section 60-1).................. 167

246-35... Effectiveness of acts by directors.................................................... 167

Division 249—Resignation, retirement or removal of directors       168

249-1..... How does a person cease to be a director?...................................... 168

249-5..... Director may resign......................................................................... 168

249-10... Removal by members...................................................................... 168

249-15... Removal by other directors............................................................. 170

249-20... Removal by general meeting........................................................... 172

Division 252—Remuneration of directors                                                     173

252-1..... Remuneration.................................................................................. 173

252-5..... Members may obtain information about directors’ remuneration.... 173

Part 6-3—Appointment of secretaries and contact persons                      176

Division 257—Appointment of secretaries and contact persons        176

257-1..... What this Part is about.................................................................... 176

257-5..... Requirement to have a secretary or contact person.......................... 176

257-10... Who may be a secretary or contact person...................................... 177

257-15... Consent to act as secretary or contact person.................................. 177

257-20... How a secretary or contact person is appointed.............................. 178

257-25... Director to be contact person in certain circumstances.................... 178

257-30... Contact person must pass on communications received.................. 178

257-35... Secretary must pass on communications received........................... 179

257-40... Effectiveness of acts by secretaries................................................. 179

257-45... Terms and conditions of office for secretaries (replaceable rule—see section 60-1) 180

257-50... Terms and conditions of contact person’s appointment (replaceable rule—see section 60-1)   180

Part 6-4—Duties and powers of directors and other officers and employees        181

Division 262—Introduction                                                                                    181

262-1..... What this Part is about.................................................................... 181

Division 265—General duties                                                                                182

265-1..... Care and diligence—civil obligation only........................................ 182

265-5..... Good faith—civil obligations.......................................................... 183

265-10... Use of position—civil obligations................................................... 183

265-15... Use of information—civil obligations............................................. 184

265-20... Acts done to comply with Native Title legislation obligations......... 184

265-25... Good faith, use of position and use of information—criminal offences 185

265-30... Interaction of sections 265-1 to 265-25 with other laws etc............ 186

265-35... Directors of wholly-owned subsidiaries......................................... 187

265-40... Responsibility of secretaries for certain contraventions................... 187

265-45... Meaning of reasonable reliance on information or advice provided by others          188

265-50... Responsibility for actions of delegate.............................................. 189

Division 268—Duties in relation to disclosure of, and voting on matters involving, material personal interests                                                                                                   190

268-1..... Material personal interest—director’s duty to disclose.................... 190

268-5..... Interest as common law holder of native title.................................. 192

268-10... Director may give other directors standing notice about an interest. 192

268-15... Interaction of sections 268-1 and 268-10 with other laws etc......... 194

268-20... Restrictions on voting..................................................................... 194

268-25... Registrar’s power to make declarations and class orders................ 196

Division 271—Duty to discharge certain trust liabilities                        198

271-1..... Directors liable for debts and other obligations incurred by corporation as trustee   198

Division 274—Powers of directors                                                                     199

274-1..... Powers of directors (replaceable rule—see section 60-1)................ 199

274-5..... Negotiable instruments (replaceable rule—see section 60-1).......... 199

274-10... Delegation....................................................................................... 199

274-15... Right of access to corporation books.............................................. 200

Part 6-5—Disqualification from managing corporations                           202

Division 279—Disqualification from managing corporations             202

279-1..... Disqualified person not to manage corporations............................. 202

279-5..... Automatic disqualification............................................................... 203

279-10... Extension of period of automatic disqualification............................ 205

279-15... Court power of disqualification—contravention of civil penalty provision              205

279-20... Court power of disqualification—insolvency and non-payment of debts 206

279-25... Court power of disqualification—repeated contraventions of Act... 207

279-30... Registrar’s power of disqualification.............................................. 208

279-35... Court power to grant leave.............................................................. 210

Part 6-6—Member approval needed for related party benefit               212

Division 284—Need for member approval                                                    212

284-1..... Need for member approval for financial benefit.............................. 212

284-5..... Consequences of breach.................................................................. 212

Division 287—Exceptions to the requirement for member approval 214

287-1..... Remuneration and reimbursement for officer or employee.............. 214

287-5..... Benefit to or by closely-held subsidiary.......................................... 215

287-10... Benefits to members that do not discriminate unfairly..................... 216

287-15... Court order...................................................................................... 216

Division 290—Procedure for obtaining member approval                  217

290-1..... Resolution may specify matters by class or kind............................. 217

290-5..... Corporation must lodge material that will be put to members with the Registrar      217

290-10... Requirements for explanatory statement to members...................... 218

290-15... Registrar may comment on proposed resolution............................. 219

290-20... Requirements for notice of meeting................................................. 219

290-25... Other material put to members........................................................ 220

290-30... Proposed resolution cannot be varied.............................................. 221

290-35... Voting by or on behalf of related party interested in proposed resolution                221

290-40... Voting on the resolution.................................................................. 222

290-45... Notice of resolution to be lodged.................................................... 223

290-50... Declaration by court of substantial compliance............................... 223

Division 293—Related parties and financial benefits                               224

293-1..... Related parties................................................................................. 224

293-5..... Giving a financial benefit................................................................ 225

Division 296—Interaction with other rules                                                   227

296-1..... General duties still apply................................................................. 227

Part 6-7—Public information about directors, secretaries and contact persons 228

Division 301—Introduction                                                                                    228

301-1..... What this Part is about.................................................................... 228

Division 304—Information to be provided                                                    229

304-1..... Director, alternate director, secretary or contact person may notify the Registrar of resignation or retirement          229

304-5..... Notice of name and address of directors and secretaries to the Registrar  229

304-10... Director, alternate director, secretary and contact person must give information to corporation               231

304-15... Address for officers........................................................................ 231

Division 307—Registrar may ask for information                                   233

307-1..... Registrar’s power to ask for information about person’s position as director, secretary or contact person              233

Chapter 7—Record keeping, reporting requirements and books    234

Part 7-1—Introduction                                                                                                    234

Division 317—Introduction                                                                                    234

317-1..... What this Chapter is about.............................................................. 234

Part 7-2—Record keeping requirements                                                              235

Division 322—Record keeping requirements                                               235

322-1..... What this Part is about.................................................................... 235

322-5..... Obligation to keep copy of constitution and records about officers, contact person, etc.          236

322-10... Obligation to keep financial records................................................ 236

322-15... Physical format............................................................................... 237

322-20... Place where records are kept........................................................... 237

322-25... Director access................................................................................ 238

Part 7-3—Reporting requirements                                                                           239

Division 327—Overview of reporting obligations                                     239

327-1..... Reports that an Aboriginal and Torres Strait Islander corporation must prepare and lodge      239

Division 330—General report for each financial year                            240

330-1..... Aboriginal and Torres Strait Islander corporation must prepare a general report each financial year        240

330-5..... Contents of general report............................................................... 240

330-10... General report to be lodged with Registrar...................................... 241

Division 333—Financial and other reports required by the regulations                242

333-1..... What this Division is about............................................................. 242

333-5..... Regulations may require financial reports, directors’ reports and other reports to be prepared 242

333-10... Contents of reports.......................................................................... 243

333-15... Other requirements in relation to report........................................... 244

333-20... Aboriginal and Torres Strait Islander corporation to obtain audit report if audit required         246

Division 336—Registrar may increase reporting requirements        247

336-1..... Registrar may require additional report, or otherwise increase reporting requirements, for particular corporation   247

336-5..... Registrar may require additional reports, or otherwise increase reporting requirements, for class of corporation    249

Division 339—Audit of financial reports                                                        252

Subdivision 339-A—Introduction                                                                       252

339-1..... What this Division is about............................................................. 252

339-5..... Application of Division................................................................... 252

339-10... When financial report required to comply with accounting standards 253

339-15... When audit required to be conducted in accordance with auditing standards            253

339-20... Lead and review auditors................................................................ 253

339-25... Professional members of the audit team.......................................... 254

Subdivision 339-B—Conduct of the audit                                                         254

339-30... Auditor to form opinion.................................................................. 254

339-35... Auditor obligations in relation to auditing standards....................... 255

339-40... Auditor’s report.............................................................................. 255

339-45... Other requirements in relation to auditor’s report............................ 256

339-50... Auditor’s independence declaration................................................ 257

339-55... Audit working papers to be retained for 7 years............................. 259

Subdivision 339-C—Qualification, experience and registration                262

339-60... Qualification and experience: individual auditor.............................. 262

339-65... Qualification and experience: audit firm.......................................... 263

339-70... Registration requirements for appointment of company as auditor.. 264

Subdivision 339-D—Auditor independence                                                      266

339-75... Independence of auditors: application of Corporations Act auditor independence provisions  266

339-80... Independence of auditors: alternative independence requirements... 268

Subdivision 339-E—Auditor’s powers and duties                                           268

339-85... Auditor’s power to obtain information............................................ 268

339-90... Reporting to the Registrar............................................................... 268

339-95... Assisting auditor............................................................................. 271

Subdivision 339-F—Appointment and removal of auditors                        272

339-100. Appointment and removal of auditors............................................. 272

Division 342—Financial reporting to members                                          273

342-1..... What this Division is about............................................................. 273

342-5..... Annual financial reporting to members........................................... 273

342-10... Deadline for reporting to members.................................................. 274

Division 345—Consolidated financial report                                                275

345-1..... Directors and officers of controlled entity to give information........ 275

345-5..... Auditor’s power to obtain information from controlled entity......... 275

345-10... Controlled entity to assist auditor.................................................... 275

345-15... Application of sections 345-1 to 345-10 to entity that has ceased to be controlled   276

Division 348—Lodging reports                                                                            277

348-1..... Lodging annual reports with the Registrar...................................... 277

348-5..... Relodgment if report amended after lodgment................................. 277

Part 7-4—Registrar may exempt from record keeping and reporting requirements       279

Division 353—Registrar may exempt from record keeping and reporting requirements          279

353-1..... Registrar’s power to make specific exemption order....................... 279

353-5..... Registrar may make determination even if application is incomplete 280

353-10... Registrar’s power to make class orders........................................... 280

Part 7-5—Criteria for determining level of reporting requirements   281

Division 358—Criteria for determining level of reporting requirements             281

358-1..... What this Part is about.................................................................... 281

358-5..... Criteria for determinations about level of reporting requirements.... 281

358-10... Reporting obligations...................................................................... 282

Part 7-6—Sanctions for contraventions of record keeping and reporting requirements               284

Division 363—Sanctions for contraventions of record keeping and reporting requirements    284

363-1..... Sanctions......................................................................................... 284

Part 7-7—Modifications of record keeping and reporting requirements by regulations                285

Division 368—Modifications of record keeping and reporting requirements by regulations    285

368-1..... Modification by regulations............................................................ 285

Part 7-8—Books                                                                                                                   286

Division 373—Introduction                                                                                    286

373-1..... What this Part is about.................................................................... 286

Division 376—When and where may books be inspected?                   287

376-1..... Inspection of books......................................................................... 287

376-5..... Translations of instruments and books............................................ 288

376-10... Court may compel compliance........................................................ 289

376-15... Admissibility of books in evidence................................................. 289

376-20... Form of books................................................................................ 289

376-25... Protection of books......................................................................... 290

376-30... Evidentiary value............................................................................. 290

376-35... Falsification of books...................................................................... 291

Chapter 8—Civil consequences of contravening civil penalty provisions               293

Division 386—Civil consequences of contravening civil penalty provisions        293

386-1..... Declarations of contravention.......................................................... 293

386-5..... Declaration of contravention is conclusive evidence....................... 294

386-10... Pecuniary penalty orders................................................................. 294

386-15... Compensation orders—civil penalty provisions.............................. 294

386-20... Who may apply for a declaration or order....................................... 295

386-25... Time limit for application for a declaration or order........................ 296

386-30... Civil evidence and procedure rules for declarations of contravention and civil penalty orders 296

386-35... Civil proceedings after criminal proceedings................................... 296

386-40... Criminal proceedings during civil proceedings............................... 296

386-45... Criminal proceedings after civil proceedings................................... 297

386-50... Evidence given in proceedings for penalty not admissible in criminal proceedings  297

386-55... Registrar requiring person to assist................................................. 297

386-60... Relief from liability for contravention of civil penalty provision..... 299

Chapter 9—Lodgments and registers                                                    301

Part 9-1—Introduction                                                                                                    301

Division 396—Introduction                                                                                    301

396-1..... What this Chapter is about.............................................................. 301

Part 9-2—Lodgments with the Registrar                                                             302

Division 401—Introduction                                                                                    302

401-1..... What this Part is about.................................................................... 302

Division 404—What is the form in which documents may be lodged?   303

404-1..... Forms for documents to be lodged with the Registrar..................... 303

404-5..... Signing documents lodged with the Registrar................................. 303

404-10... Documents lodged with the Registrar electronically........................ 303

404-15... Relodging of lost registered documents.......................................... 304

Division 407—Registrar’s powers                                                                      306

407-1..... Registrar may refuse to receive or register documents.................... 306

407-5..... Registrar may require additional information.................................. 306

407-10... Registrar may require information from persons on a register........ 307

407-15... Telephone or email notice of certain changes.................................. 307

407-20... Registrar may destroy or dispose of lodged documents.................. 308

Division 410—Courts power if documents not lodged                            309

410-1..... Court may make certain orders........................................................ 309

Part 9-3—Registers                                                                                                            311

Division 415—Introduction                                                                                    311

415-1..... What this Part is about.................................................................... 311

Division 418—Registers to be kept                                                                    312

418-1..... Registers......................................................................................... 312

418-5..... Form of registers............................................................................. 312

418-10... Register of Aboriginal and Torres Strait Islander Corporations...... 312

418-15... Register of Disqualified Officers.................................................... 312

Division 421—What information may a person obtain from the Registrar?     313

421-1..... Inspection and production of records.............................................. 313

421-5..... Requests and certification of copy or extract etc.............................. 314

Division 424—Validity and use of information etc. obtained from a register    316

424-1..... Validity of copy or extract............................................................... 316

424-5..... Use in court proceedings etc. of documents issued by Registrar..... 316

424-10... Registrar’s certificate that person was a director etc........................ 318

Chapter 10—Regulation and enforcement                                      319

Part 10-1—Introduction                                                                                                  319

Division 434—Introduction                                                                                    319

434-1..... What this Chapter is about.............................................................. 319

Part 10-2—Regulation of Aboriginal and Torres Strait Islander corporations    320

Division 439—Regulation of Aboriginal and Torres Strait Islander corporations          320

439-1..... What this Part is about.................................................................... 320

439-5..... Registrar may convene meetings of interested persons................... 320

439-10... Registrar may call a general meeting (other than an AGM)............. 321

439-15... Registrar may call an AGM............................................................ 323

439-20... Registrar may require compliance with Act etc............................... 324

Part 10-3—Enforcement                                                                                                 326

Division 444—Introduction                                                                                    326

444-1..... What this Part is about.................................................................... 326

Division 447—Authorised officers                                                                      327

447-1..... Appointment of authorised officers................................................. 327

447-5..... Identity cards................................................................................... 327

Division 450—Purposes for which powers under this Part may be exercised    328

450-1..... Purposes for which power under this Part may be exercised.......... 328

Division 453—Examination of books and persons                                    329

453-1..... Examination of books..................................................................... 329

453-5..... Production of books or attendance to answer questions.................. 330

Division 456—Warrants for books not produced                                      332

Subdivision 456-A—Warrants applied for in person                                    332

456-1..... Application for warrant to seize books not produced...................... 332

456-5..... Grant of warrant.............................................................................. 332

456-10... Powers where books produced or seized........................................ 333

Subdivision 456-B—Warrants by telephone or other electronic means   335

456-15... Applying for warrants by telephone or other electronic means....... 335

456-20... Issuing warrants by telephone etc................................................... 336

456-25... Unsigned warrants by telephone etc. in court proceedings.............. 337

Subdivision 456-C—Offences relating to warrants by telephone or other electronic means      337

456-30... Offence for stating incorrect names in warrants by telephone etc.... 337

456-35... Offence for unauthorised form of warrant...................................... 338

456-40... Offence for execution etc. of unauthorised form of warrant............ 338

456-45... Offence for giving unexecuted form of warrant.............................. 338

Subdivision 456-D—Warrant details to be given to occupier                      339

456-50... Details of warrant to be given to occupier etc.................................. 339

Part 10-4—Offences relating to regulatory and enforcement powers of Registrar           340

Division 461—Offences relating to regulatory and enforcement powers of Registrar                 340

461-1..... Obstructing Registrar or interfering with meeting called by Registrar etc.                340

461-5..... False information............................................................................ 341

461-10... Concealing books relevant to investigation..................................... 341

461-15... Self-incrimination............................................................................ 342

Part 10-5—Protection for whistleblowers                                                            343

Division 466—Which disclosures qualify for protection under this Part?            343

466-1..... Disclosures qualifying for protection.............................................. 343

Division 469—Effects of disclosure                                                                    345

469-1..... Disclosure that qualifies for protection not actionable etc................ 345

469-5..... Victimisation prohibited.................................................................. 346

469-10... Right to compensation..................................................................... 347

Division 472—Confidentiality requirement                                                   348

472-1..... Confidentiality requirements for corporations, corporation officers and employees and auditors             348

Chapter 11—External administration                                                  350

Part 11-1—Introduction                                                                                                  350

Division 482—Introduction                                                                                    350

482-1..... What this Chapter is about.............................................................. 350

Part 11-2—Special administration                                                                            352

Division 487—Special administration of Aboriginal and Torres Strait Islander corporation   352

487-1..... Registrar may put Aboriginal and Torres Strait Islander corporation under special administration          352

487-5..... Grounds for special administration................................................. 352

487-10... Show cause notice procedure.......................................................... 355

487-15... Extension of period of special administration.................................. 356

487-20... Registrar may terminate special administration................................ 356

487-25... References to corporation under special administration................... 356

Division 490—Appointment of special administrator                              358

490-1..... Registrar may appoint special administrator.................................... 358

490-5..... Period of appointment..................................................................... 358

Division 493—Notice requirements                                                                   359

493-1..... Notice of special administration determination or appointment of special administrator           359

Division 496—Effect of appointment of special administrator on officers of the corporation 361

496-1..... General rule that offices of directors and secretary vacated when special administrator appointed           361

496-5..... Registrar may determine that offices not vacated in certain circumstances                361

496-10... Powers of officers can only be exercised by, or with the consent of, special administrator      362

496-15... Only special administrator can deal with corporation’s property..... 363

496-20... Order for compensation where officer involved in void transaction 364

Division 499—Function, duties and powers of special administrator 366

499-1..... Function of special administrator.................................................... 366

499-5..... Powers of special administrator...................................................... 366

499-10... Applying Corporations Act provisions to Aboriginal and Torres Strait Islander corporation that is under special administration.................................................................................. 367

Division 502—Special administrator to report to Registrar               369

502-1..... Report to Registrar.......................................................................... 369

Division 505—Termination of special administrator’s appointment 370

505-1..... Termination of appointment of special administrator....................... 370

505-5..... Grounds for terminating appointment............................................. 371

505-10... Registrar to appoint new special administrator in certain circumstances 371

Division 508—Transition to normal control of the corporation’s affairs at end of special administration                                                                                                                     372

508-1..... Special administrator to ensure that there will be directors when corporation ceases to be under special administration........................................................................................................ 372

508-5..... Election of directors to take over affairs of corporation when corporation ceases to be under special administration........................................................................................................ 373

Division 511—Miscellaneous                                                                                 374

511-1..... Remuneration of special administrator............................................ 374

Part 11-3—Receivers, and other controllers, of property of corporations              375

Division 516—Receivers, and other controllers, of property of corporations   375

516-1..... Applying Corporations Act receiver provisions to Aboriginal and Torres Strait Islander corporations   375

Part 11-4—Administration of an Aboriginal and Torres Strait Islander corporation’s affairs with a view to executing a deed of corporation arrangement                         377

Division 521—Administration of an Aboriginal and Torres Strait Islander corporation’s affairs with a view to executing a deed of corporation arrangement 377

521-1..... Applying Corporations Act administration provisions to Aboriginal and Torres Strait Islander corporations         377

521-5..... Administrator’s capacity to act as trustee........................................ 378

521-10... Corporations Act administrator cannot be appointed if special administrator appointed           378

521-15... Effect of appointment of special administrator on Corporations Act administrator   379

Part 11-5—Winding up                                                                                                   380

Division 526—Winding up                                                                                      380

526-1..... Court may order winding up........................................................... 380

526-5..... Grounds for Court ordered winding up.......................................... 380

526-10... Acts etc. done to comply with Native Title legislation requirement. 382

526-15... Who may apply to court for winding up order................................ 382

526-20... Voluntary winding up..................................................................... 384

526-25... Distribution of surplus assets in winding up by Court.................... 385

526-30... Distribution of surplus assets in voluntary winding up................... 386

526-35... Applying Corporations Act winding up provisions to Aboriginal and Torres Strait Islander corporations              387

526-40... Application of Corporations Act pre-winding up provisions.......... 389

Part 11-6—Insolvent trading                                                                                        391

Division 531—Insolvent trading                                                                          391

531-1..... Applying Corporations Act insolvent trading provisions to Aboriginal and Torres Strait Islander corporations     391

531-5..... Section 588G of Corporations Act prevails over conflicting Native Title legislation obligations             392

Part 11-7—Employees’ entitlements                                                                        393

Division 536—Employees’ entitlements                                                          393

536-1..... Applying Corporations Act employees’ entitlements provisions to Aboriginal and Torres Strait Islander corporations........................................................................................................ 393

Chapter 12—Deregistration and unclaimed property         395

Part 12-1—Deregistration                                                                                              395

Division 546—Deregistration                                                                                395

546-1..... Deregistration—voluntary............................................................... 395

546-5..... Deregistration—Registrar initiated.................................................. 396

546-10... Deregistration—following amalgamation or winding up................ 397

546-15... Registered native title body corporate.............................................. 398

546-20... Effect of deregistration.................................................................... 398

546-25... What the Registrar does with the property...................................... 399

546-30... Registrar’s power to fulfil outstanding obligations of deregistered corporation       400

546-35... Claims against insurers of deregistered corporation........................ 401

546-40... Reinstatement.................................................................................. 401

Part 12-2—Unclaimed property                                                                                 403

Division 551—Unclaimed property                                                                   403

551-1..... Unclaimed property......................................................................... 403

551-5..... Registrar to deal with unclaimed property....................................... 403

551-10... Registrar and Commonwealth not liable to pay calls on shares etc.. 403

551-15... Disposition of money that is unclaimed property etc....................... 404

551-20... Establishment of the Aboriginal and Torres Strait Islander Corporations Unclaimed Money Account    404

551-25... Credits of amounts to Account........................................................ 404

551-30... Purposes of Account....................................................................... 404

551-35... Claims of disposition of money to incorrect payee.......................... 405

551-40... Commonwealth or Registrar not liable for loss or damage.............. 406

Chapter 13—Offences                                                                                            407

Part 13-1—Offences about false or misleading statements etc.               407

Division 561—Offences about false or misleading statements etc.   407

561-1..... False or misleading statements........................................................ 407

561-5..... False information etc....................................................................... 409

Part 13-2—General matters relating to offences                                              411

Division 566—General matters relating to offences                                411

566-1..... Penalties for bodies corporate......................................................... 411

566-5..... Penalty notices................................................................................ 411

566-10... Continuing offences........................................................................ 414

566-15... Time for instituting criminal proceedings........................................ 417

566-20... Privilege against self-incrimination not available to bodies corporate in certain proceedings    418

566-25... Certain persons to assist in prosecutions......................................... 418

Chapter 14—Courts and proceedings                                                  420

Part 14-1—Powers of courts                                                                                        420

Division 576—Powers of courts                                                                           420

576-1..... Power to grant relief........................................................................ 420

576-5..... Power of Court to give directions with respect to meetings ordered by the Court    421

576-10... Appeals from decisions of receivers, liquidators etc....................... 421

576-15... Irregularities.................................................................................... 422

576-20... Power of Court to prohibit payment or transfer of money, financial products or other property              425

576-25... Injunctions...................................................................................... 427

576-30... Effect of sections 576-20 and 576-25............................................. 429

576-35... Power of Court to punish for contempt of Court............................ 429

Part 14-2—Proceedings                                                                                                   431

Division 581—Proceedings                                                                                     431

581-1..... The Registrar’s power to intervene in proceedings......................... 431

581-5..... Civil proceedings not to be stayed................................................... 431

581-10... Standard of proof............................................................................ 431

581-15... Evidence of contravention............................................................... 432

581-20... Costs............................................................................................... 432

581-25... Vesting of property......................................................................... 433

Part 14-3—Jurisdiction and procedure of courts                                            435

Division 586—Civil jurisdiction                                                                           435

Subdivision 586-A—Introduction                                                                       435

586-1..... Operation of Division..................................................................... 435

Subdivision 586-B—Conferral of jurisdiction                                                436

586-5..... Jurisdiction of Federal Court and State and Territory Supreme Courts 436

586-10... Jurisdiction of Family Court and State Family Courts.................... 437

586-15... Jurisdiction of courts (decisions to prosecute and related criminal justice process decisions made by Commonwealth officers)........................................................................................... 437

586-20... Jurisdiction of lower courts............................................................. 439

586-25... Appeals........................................................................................... 440

586-30... Courts to act in aid of each other..................................................... 441

Subdivision 586-C—Transfer of proceedings                                                 441

586-35... Transfer of proceedings by the Federal Court and State and Territory Supreme Courts           441

586-40... Transfer of proceedings by Family Court and State Family Courts 443

586-45... Transfer of proceedings in lower courts.......................................... 445

586-50... Further matters for a court to consider when deciding whether to transfer a proceeding          446

586-55... Transfer may be made at any stage.................................................. 446

586-60... Transfer of documents.................................................................... 446

586-65... Conduct of proceedings.................................................................. 447

586-70... Rights of appearance....................................................................... 448

586-75... Limitation on appeals...................................................................... 448

Subdivision 586-D—Rules of court                                                                     448

586-80... Rules of the Federal Court.............................................................. 448

586-85... Rules of the Supreme Court............................................................ 449

586-90... Rules of the Family Court............................................................... 449

Division 589—Criminal jurisdiction                                                                  451

589-1..... Operation of Division..................................................................... 451

589-5..... Jurisdiction of courts....................................................................... 451

589-10... Laws to be applied.......................................................................... 454

Chapter 15—Administration                                                                          455

Part 15-1—Introduction                                                                                                  455

Division 599—Introduction                                                                                    455

599-1..... What this Chapter is about.............................................................. 455

Part 15-2—Protection of information                                                                     456

Division 604—Protection of information                                                        456

604-1..... What this Part is about.................................................................... 456

604-5..... Protected information...................................................................... 456

604-10... Registrar’s obligations in relation to protected information............. 457

604-15... Special administrator’s obligations in relation to protected information 457

604-20... Consultant’s obligations in relation to protected information.......... 457

604-25... Authorised use or disclosure........................................................... 458

Part 15-3—Protection from liability for Registrar, Minister etc.           462

Division 609—Protection from liability for Registrar, Minister etc. 462

609-1..... Protection from liability for Minister, Registrar etc......................... 462

Part 15-4—Review of decisions                                                                                  463

Division 614—Introduction                                                                                    463

614-1..... What this Part is about.................................................................... 463

Division 617—Reviewable decisions                                                                  464

617-1..... Reviewable decisions...................................................................... 464

617-5..... Deadlines for making reviewable decisions.................................... 468

617-10... Notice of reviewable decision and review rights............................. 468

Division 620—Internal review of reviewable decisions                          470

620-1..... Registrar may reconsider reviewable decisions on own initiative.... 470

620-5..... Reconsideration of reviewable decisions......................................... 470

Division 623—AAT review of reviewable decisions                                 472

623-1..... AAT review of reviewable decisions.............................................. 472

Part 15-5—Fees                                                                                                                    473

Division 628—Fees                                                                                                      473

628-1..... Fees................................................................................................. 473

628-5..... Lodgment of document without payment of fee.............................. 473

628-10... Doing act without payment of fee................................................... 473

628-15... Effect of sections 628-5 and 628-10............................................... 474

628-20... Debt due to the Commonwealth...................................................... 474

628-25... Payment of fee does not give right to inspect or search................... 474

Part 15-6—Regulations                                                                                                    475

Division 633—Regulations                                                                                      475

633-1..... General regulation making power................................................... 475

633-5..... Regulations concerning registered native title bodies corporate....... 475

Part 15-7—Approved forms                                                                                         478

Division 638—Approved forms                                                                           478

638-1..... Registrar may approve forms.......................................................... 478

Chapter 16—Registrar and Deputy Registrars of Aboriginal and Torres Strait Islander Corporations                                                                                   480

Part 16-1—Introduction                                                                                                  480

Division 648—Introduction                                                                                    480

648-1..... What this Chapter is about.............................................................. 480

Part 16-2—Appointment of the Registrar and Deputy Registrars       481

Division 653—Appointment of Registrar and Deputy Registrars    481

653-1..... Registrar of Aboriginal and Torres Strait Islander Corporations..... 481

653-5..... Deputy Registrars of Aboriginal and Torres Strait Islander Corporations                481

Part 16-3—Registrar’s functions and powers                                                   482

Division 658—Registrar’s functions and powers                                       482

658-1..... Functions of the Registrar............................................................... 482

658-5..... Aims of the Registrar...................................................................... 483

658-10... Powers of the Registrar................................................................... 483

658-15... Registrar to have a seal.................................................................... 484

658-20... Judicial notice of certain matters...................................................... 484

Part 16-4—Matters concerning the Registrar’s and Deputy Registrars’ appointments 485

Division 663—Matters concerning the Registrar’s and Deputy Registrars’ appointments        485

663-1..... Registrar’s remuneration................................................................. 485

663-5..... Resignation..................................................................................... 485

663-10... Termination of Registrar’s appointment.......................................... 485

663-15... Termination of Deputy Registrar’s appointment............................. 486

663-20... Disclosure of interests..................................................................... 486

663-25... Acting appointments....................................................................... 486

663-30... Leave of absence............................................................................. 487

663-35... Outside employment....................................................................... 487

Part 16-5—Delegation                                                                                                      488

Division 668—Delegation                                                                                        488

668-1..... Delegation by Registrar................................................................... 488

668-5..... Sub-delegation by Deputy Registrar............................................... 488

Part 16-6—Staffing                                                                                                            490

Division 673—Staffing                                                                                              490

673-1..... Staff assisting the Registrar and Deputy Registrar.......................... 490

673-5..... Engagement of consultants etc. by the Registrar............................. 490

Chapter 17—Interpreting this Act                                                            491

Part 17-1—Meaning of some important concepts                                           491

Division 683—Directors and officers of Aboriginal and Torres Strait Islander corporations 491

683-1..... Meaning of director and officer ...................................................... 491

Division 686—Associates                                                                                         494

686-1..... Effect of Division............................................................................ 494

686-5..... Associates of bodies corporate........................................................ 494

686-10... General............................................................................................ 494

686-15... Exclusions....................................................................................... 495

Division 689—Subsidiaries and control                                                           496

689-1..... What is a subsidiary........................................................................ 496

689-5..... Control of a body corporate’s board............................................... 496

689-10... Matters to be disregarded................................................................ 497

689-15... References in this Division to a subsidiary..................................... 498

689-20... Related bodies corporate................................................................. 498

689-25... Control............................................................................................ 498

Part 17-2—Interpretation of other expressions                                                500

Division 694—Interpretation of other expressions                                   500

694-1..... Giving information.......................................................................... 500

694-5..... Doing acts....................................................................................... 500

694-10... Signing............................................................................................ 500

694-15... Business affairs of a body corporate............................................... 500

694-20... Business affairs of a natural person................................................ 500

694-25... Business affairs of a partnership..................................................... 501

694-30... Business affairs of a trust................................................................ 502

694-35... Meaning of court and Court............................................................ 502

694-40... Entities............................................................................................ 503

694-45... Entities connected with a corporation (including an Aboriginal and Torres Strait Islander corporation)  503

694-50... Extension of period for doing an act............................................... 505

694-55... Involvement in contraventions........................................................ 505

694-60... Possession...................................................................................... 505

694-65... Public document of a body corporate.............................................. 506

694-70... Receivers and managers.................................................................. 507

694-75... Securities......................................................................................... 507

694-80... Solvency and insolvency................................................................. 507

694-85... Meaning of chief executive officer function ...................................... 508

694-90... Applications to be in writing........................................................... 509

694-95... Effect of certain contraventions of this Act..................................... 509

694-100. Effect of provisions empowering a person to require or prohibit conduct                509

694-105. Calculation of time.......................................................................... 509

694-110. Performance of functions by Registrar or Deputy Registrar includes reference to delegate etc.               510

Part 17-3—Dictionary                                                                                                      511

Division 700—Dictionary                                                                                        511

700-1..... Dictionary....................................................................................... 511

 



A Bill for an Act to provide for Aboriginal and Torres Strait Islander corporations, and for related purposes

Preamble

                   The Parliament of Australia intends that the following law will take effect according to its terms and be a special law for the descendants of the original inhabitants of Australia.

                   The law is intended, for the purposes of paragraph 4 of Article 1 of the International Convention on the Elimination of All Forms of Racial Discrimination and the Racial Discrimination Act 1975 , to be a special measure for the advancement and protection of Aboriginal peoples and Torres Strait Islanders.

The Parliament of Australia enacts:

Chapter 1 Introduction

Chapter 2 Aboriginal and Torres Strait Islander corporations

Chapter 3 Basic features of an Aboriginal and Torres Strait Islander corporation

Chapter 4 Members and observers

Chapter 5 Meetings

Chapter 6 Officers

Chapter 7 Record keeping, reporting requirements and books

Chapter 8 Civil consequences of contravening civil penalty provisions

   

Division 386 Civil consequences of contravening civil penalty provisions

386-1   Declarations of contravention

Meaning of civil penalty provisions and declarations

             (1)  If a Court is satisfied that a person has contravened 1 of the following provisions, it must make a declaration of contravention:

                     (a)  subsections 265-1(1), 265-5(1) and (2), 265-10(1) and (2) and 265-15(1) and (2) (officers’ duties);

                     (b)  subsection 284-5(2) (related parties rules);

                     (c)  subsection 363-1(1) (requirements for record keeping and reports);

                     (d)  subsection 588G(2) of the Corporations Act (as applied by section 531-1 of this Act) (insolvent trading).

These provisions are the civil penalty provisions .

Note:          Once a declaration has been made, the Registrar can then seek a pecuniary penalty order (section 386-10) or a disqualification order (section 279-15).

Declarations to specify certain matters

             (2)  A declaration of contravention must specify the following:

                     (a)  the Court that made the declaration;

                     (b)  the civil penalty provision that was contravened;

                     (c)  the person who contravened the provision;

                     (d)  the conduct that constituted the contravention;

                     (e)  the Aboriginal and Torres Strait Island corporation affected by the contravention.

386-5   Declaration of contravention is conclusive evidence

                   A declaration of contravention is conclusive evidence of the matters referred to in subsection 386-1(2).

386-10   Pecuniary penalty orders

Pecuniary penalties

             (1)  A Court may order a person to pay the Commonwealth a pecuniary penalty of up to $200,000 if:

                     (a)  a declaration of contravention by the person has been made under section 386-1; and

                     (b)  the contravention:

                              (i)  materially prejudices the interests of the Aboriginal and Torres Strait Islander corporation affected by the contravention or the interests of its members; or

                             (ii)  materially prejudices the ability of the Aboriginal and Torres Strait Islander corporation affected by the contravention to pay its creditors; or

                            (iii)  is serious.

Penalty a civil debt etc.

             (2)  The penalty is a civil debt payable to the Commonwealth. The Registrar, or the Commonwealth, may enforce the order as if it were an order made in civil proceedings against the person to recover a debt due by the person. The debt arising from the order is taken to be a judgment debt.

386-15   Compensation orders—civil penalty provisions

Compensation for damage suffered

             (1)  A Court may order a person to compensate an Aboriginal and Torres Strait Islander corporation for damage suffered by the corporation if:

                     (a)  the person has contravened a civil penalty provision in relation to the corporation; and

                     (b)  the damage resulted from the contravention.

The order must specify the amount of the compensation.

Note:          An order may be made under this subsection whether or not a declaration of contravention has been made under section 386-1.

Damage includes profits

             (2)  In determining the damage suffered by the corporation for the purposes of making a compensation order, include profits made by any person resulting from the contravention.

Recovery of damage

             (3)  A compensation order may be enforced as if it were a judgment of the Court.

386-20   Who may apply for a declaration or order

Application by Registrar

             (1)  The Registrar may apply for a declaration of contravention, a pecuniary penalty order or a compensation order.

Application by corporation

             (2)  The Aboriginal and Torres Strait Islander corporation affected by the contravention of a civil penalty provision may apply for a compensation order.

Note:          An application for a compensation order may be made whether or not a declaration of contravention has been made under section 386-1.

             (3)  The Aboriginal and Torres Strait Islander corporation affected by the contravention of a civil penalty provision may intervene in an application for a declaration of contravention or a pecuniary penalty order in relation to the corporation. The corporation is entitled to be heard on all matters other than whether the declaration or order should be made.

No one else may apply

             (4)  No person may apply for a declaration of contravention, a pecuniary penalty order or a compensation order unless permitted by this section.

Note:          In certain circumstances, a person may bring proceedings in the name of an Aboriginal and Torres Strait Islander corporation (see Division 169).

             (5)  Subsection (4) does not exclude the operation of the Director of Public Prosecutions Act 1983 .

386-25   Time limit for application for a declaration or order

                   Proceedings for a declaration of contravention, a pecuniary penalty order or a compensation order, may be started no later than 6 years after the contravention.

386-30   Civil evidence and procedure rules for declarations of contravention and civil penalty orders

                   The Court must apply the rules of evidence and procedure for civil matters when hearing proceedings for:

                     (a)  a declaration of contravention; or

                     (b)  a pecuniary penalty order.

386-35   Civil proceedings after criminal proceedings

                   A court must not make a declaration of contravention or a pecuniary penalty order against a person for a contravention if the person has been convicted of an offence constituted by conduct that is substantially the same as the conduct constituting the contravention.

386-40   Criminal proceedings during civil proceedings

             (1)  Proceedings for a declaration of contravention or pecuniary penalty order against a person are stayed if:

                     (a)  criminal proceedings are started or have already been started against the person for an offence; and

                     (b)  the offence is constituted by conduct that is substantially the same as the conduct alleged to constitute the contravention.

             (2)  The proceedings for the declaration or order may be resumed if the person is not convicted of the offence. Otherwise, the proceedings for the declaration or order are dismissed.

386-45   Criminal proceedings after civil proceedings

                   Criminal proceedings may be started against a person for conduct that is substantially the same as conduct constituting a contravention of a civil penalty provision regardless of whether:

                     (a)  a declaration of contravention has been made against the person; or

                     (b)  a pecuniary penalty order has been made against the person; or

                     (c)  a compensation order has been made against the person; or

                     (d)  the person has been disqualified from managing an Aboriginal and Torres Strait Islander corporation under Part 6-5.

386-50   Evidence given in proceedings for penalty not admissible in criminal proceedings

                   Evidence of information given or evidence of production of documents by an individual is not admissible in criminal proceedings against the individual if:

                     (a)  the individual previously gave the evidence or produced the documents in proceedings for a pecuniary penalty order against the individual for a contravention of a civil penalty provision (whether or not the order was made); and

                     (b)  the conduct alleged to constitute the offence is substantially the same as the conduct that was claimed to constitute the contravention.

However, this does not apply to a criminal proceeding in respect of the falsity of the evidence given by the individual in the proceedings for the pecuniary penalty order.

386-55   Registrar requiring person to assist

             (1)  The Registrar may require a person to give all reasonable assistance in connection with:

                     (a)  an application for a declaration of contravention or a pecuniary penalty order; or

                     (b)  criminal proceedings for an offence against this Act.

             (2)  A requirement under subsection (1) is not a legislative instrument.

             (3)  The Registrar can require the person to assist in connection with an application for a declaration or order if, and only if:

                     (a)  it appears to the Registrar that someone other than the person required to assist may have contravened a civil penalty provision; and

                     (b)  the Registrar suspects or believes that the person required to assist can give information relevant to the application.

             (4)  The Registrar can require the person to assist in connection with criminal proceedings if, and only if:

                     (a)  it appears to the Registrar that the person required to assist is unlikely to be a defendant in the proceedings; and

                     (b)  the person required to assist is, in relation to a person who is or should be a defendant in the proceedings:

                              (i)  an employee or agent (including a banker or auditor) of the other person; or

                             (ii)  if the other person is a body corporate—an officer or employee of the other person; or

                            (iii)  if the other person is an individual—a partner of the other person.

             (5)  The Registrar can require the person to assist regardless of whether:

                     (a)  an application for the declaration or penalty order has actually been made; or

                     (b)  criminal proceedings for the offence have actually begun.

             (6)  The person cannot be required to assist if they are or have been a lawyer for:

                     (a)  in an application for a declaration or penalty order—the person suspected of the contravention; or

                     (b)  in criminal proceedings—a defendant or likely defendant in the proceedings.

             (7)  The requirement to assist must be given in writing.

             (8)  The Court may order the person to comply with the requirement in a specified way. Only the Registrar may apply to the Court for an order under this subsection.

Note:          The person must comply with the requirement and may commit an offence if they do not, even if there is no order under this subsection (see section 694-100).

386-60   Relief from liability for contravention of civil penalty provision

             (1)  This section:

                     (a)  applies to proceedings for a contravention of a civil penalty provision, including proceedings under:

                              (i)  section 386-15; or

                             (ii)  section 588M or 588W of the Corporations Act (as applied by section 531-1 of this Act); and

                     (b)  does not apply to proceedings for an offence, except so far as the proceedings relate to the question whether the court should make an order under section 588K of the Corporations Act (as applied by section 531-1 of this Act).

             (2)  If:

                     (a)  proceedings to which this section applies are brought against a person; and

                     (b)  in the proceedings it appears to the court that the person has, or may have, contravened a civil penalty provision but that:

                              (i)  the person has acted honestly; and

                             (ii)  having regard to all the circumstances of the case (including, where applicable, those connected with the person’s appointment as an officer, or employment as an employee, of an Aboriginal and Torres Strait Islander corporation), the person ought fairly to be excused for the contravention;

the court may relieve the person either wholly or partly from a liability to which the person would otherwise be subject, or that might otherwise be imposed on the person, because of the contravention.

             (3)  In determining under subsection (2) whether a person ought fairly to be excused for a contravention of section 588G of the Corporations Act (as applied by section 531-1 of this Act), the matters to which regard is to be had include, but are not limited to:

                     (a)  any action the person took with a view to:

                              (i)  appointing an administrator of the Aboriginal and Torres Strait Islander corporation; or

                             (ii)  having a special administrator for the Aboriginal and Torres Strait Islander corporation appointed; and

                     (b)  when that action was taken; and

                     (c)  the results of that action.

             (4)  If a person thinks that proceedings to which this section applies will or may be begun against them, they may apply to the Court for relief.

             (5)  On an application under subsection (4), the Court may grant relief under subsection (2) as if the proceedings had been begun in the Court.

             (6)  For the purposes of subsection (2) as applying for the purposes of a case tried by a judge with a jury:

                     (a)  a reference in that subsection to the court is a reference to the judge; and

                     (b)  the relief that may be granted includes withdrawing the case in whole or in part from the jury and directing judgment to be entered for the defendant on such terms as to costs as the judge thinks appropriate.

             (7)  Nothing in this section limits, or is limited by, section 576-1.



 

Chapter 9 Lodgments and registers

Chapter 10 Regulation and enforcement

Chapter 11 External administration

Chapter 12 Deregistration and unclaimed property

Chapter 13 Offences

Chapter 14 Courts and proceedings

Chapter 15 Administration

Chapter 16 Registrar and Deputy Registrars of Aboriginal and Torres Strait Islander Corporations

Chapter 17 Interpreting this Act