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Corporations (Aboriginal and Torres Strait Islander) Bill 2006

2004-2005-2006

 

The Parliament of the

Commonwealth of Australia

 

HOUSE OF REPRESENTATIVES

 

 

 

 

As read a third time

 

 

 

 

 

 

 

 

 

Corporations (Aboriginal and Torres Strait Islander) Bill 2006

 

No.      , 2006

 

 

 

 

 

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....... Transfer of registration, 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—Application for new 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

Division 22—Application to register existing body corporate under Part 2-3   12

22-1....... Application for registration............................................................... 12

22-5....... Matters to accompany application..................................................... 14

22-10..... Registrar may seek further information............................................. 15

Division 23—Application to register amalgamated corporation under Part 2-3             16

23-1....... Application for registration............................................................... 16

23-5....... Matters to accompany application..................................................... 18

23-10..... Registrar may seek further information............................................. 18

Part 2-3—Decisions on applications                                                                           20

Division 26—Registrar to decide application                                                 20

26-1....... Registrar to decide application........................................................... 20

26-5....... Registrar may grant application if application is incomplete etc......... 22

26-10..... Registrar may grant application if some basic requirements are not met 23

26-15..... Registrar not to register trade unions etc........................................... 23

Division 29—What are the basic requirements for registration?       24

29-1....... Minimum number of members requirement...................................... 24

29-5....... Indigeneity requirement..................................................................... 24

29-10..... Age of members requirement............................................................ 24

29-15..... Pre-incorporation requirement........................................................... 24

29-17..... Pre-transfer of registration requirement............................................. 25

29-18..... Creditor notice requirement............................................................... 27

29-19..... Pre-amalgamation requirements........................................................ 29

29-20..... Internal governance rules requirement............................................... 30

29-25..... Name requirement............................................................................. 30

Division 32—Decisions on applications                                                              31

32-1....... Successful applications..................................................................... 31

32-5....... Unsuccessful applications................................................................. 31

Part 2-4—Registration of an Aboriginal and Torres Strait Islander corporation as a small, medium or large corporation                                                                                                33

Division 37—Registration of an Aboriginal and Torres Strait Islander corporation as a small, medium or large corporation                                                                          33

37-1....... Registrar to register Aboriginal and Torres Strait Islander corporation as a small, medium or large corporation     33

37-5....... Registrar may alter registered size of corporation after registration... 34

37-10..... Small, medium and large corporations.............................................. 35

37-15..... When an Aboriginal and Torres Strait Islander corporation controls an entity         36

37-20..... Counting employees.......................................................................... 36

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

Part 2-5—Effects of registration                                                                                  38

Division 42—Effects of registration                                                                    38

42-1....... Corporation comes into existence on registration.............................. 38

42-3....... Effect of registration of existing body corporate under Part 2-3........ 38

42-4....... Effect of registration of amalgamated corporation under Part 2-3..... 38

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

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

42-15..... Registered office............................................................................... 43

42-20..... Document access address.................................................................. 44

42-25..... Corporation may have common seal................................................. 44

42-30..... Vesting of property in corporation on registration............................ 45

42-35..... Body corporate registered as Aboriginal and Torres Strait Islander corporation (liability of members on winding up).......................................................................................................... 45

42-40..... Body corporate registered as Aboriginal and Torres Strait Islander corporation (modification by regulations)        46

42-45..... Registration of amalgamated corporation (liability of members on winding up)       47

42-50..... Registration of amalgamated corporation (modification by regulations) 47

Part 2-6—Arrangements and reconstructions                                                    49

Division 45—Application of Corporations Act arrangements and reconstructions provisions                49

45-1....... Applying Corporations Act arrangements and reconstructions provisions to Aboriginal and Torres Strait Islander corporations...................................................................................... 49

Chapter 3—Basic features of an Aboriginal and Torres Strait Islander corporation                                                                                                                          51

Part 3-1—Introduction                                                                                                      51

Division 52—Introduction                                                                                         51

52-1....... What this Chapter is about................................................................ 51

Part 3-2—Rules dealing with the internal governance of corporations 52

Division 57—Introduction                                                                                         52

57-1....... What this Part is about...................................................................... 52

57-5....... List of internal governance rules....................................................... 53

Division 60—What are the replaceable rules and when do they apply to a corporation?           58

60-1....... Replaceable rules............................................................................... 58

60-5....... Corporation’s constitution can modify or replace replaceable rules... 58

60-10..... Effect of constitution and replaceable rules....................................... 59

60-15..... Failure to comply with replaceable rules........................................... 59

60-20..... Modification by regulations.............................................................. 59

Division 63—What are the internal governance rules of a corporation?             60

63-1....... Meaning of internal governance rules............................................... 60

Division 66—What are the internal governance rules requirements?    61

66-1....... Requirements.................................................................................... 61

66-5....... Meaning of cover the matters provided for in the replaceable rules . 62

Division 69—Constitutions and amendment and replacement of constitutions                 64

Subdivision 69-A—Constitution on registration                                               64

69-1....... Constitution of an Aboriginal and Torres Strait Islander corporation 64

Subdivision 69-B—Constitutional changes after registration                       64

69-5....... Overview—ways a constitution may be changed.............................. 64

69-10..... Meaning of constitutional change etc................................................ 65

69-15..... Extra requirements for constitutional change in constitution............. 66

69-20..... Corporation to lodge copy of constitutional changes......................... 66

69-25..... Special administrator to lodge copy of constitutional changes........... 67

69-30..... Registrar to determine if constitutional change should be registered. 67

69-35..... Registrar may change an Aboriginal and Torres Strait Islander corporation’s constitution on own initiative           68

69-40..... Date of effect of constitutional change.............................................. 70

Division 72—Other matters concerning constitutions etc.                      71

72-1....... Registrar may direct corporation to lodge constitution...................... 71

72-5....... Corporation must provide governance material to members.............. 71

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

Part 3-3—Minimum number of members of Aboriginal and Torres Strait Islander corporations         73

Division 77—Minimum number of members of Aboriginal and Torres Strait Islander corporations                                                                                                                       73

77-1....... What this Part is about...................................................................... 73

77-5....... Minimum number of members requirement...................................... 73

77-10..... Registrar may exempt if appropriate and reasonable to do so............ 74

77-15..... Registrar may determine a different number to number requested..... 75

77-20..... Earlier determination taken to be revoked.......................................... 75

77-25..... Notice to be given............................................................................. 75

Part 3-4—Names                                                                                                                    76

Division 82—Introduction                                                                                         76

82-1....... What this Part is about...................................................................... 76

Division 85—What names may a corporation have?                                77

85-1....... Corporation’s name requirements..................................................... 77

85-5....... Available names................................................................................ 78

85-10..... Acceptable abbreviations................................................................... 79

85-15..... Using a name and ICN on documents............................................... 80

85-20..... Exception to requirement to have ICN on receipts............................ 81

85-25..... Regulations may exempt from requirement to set out information on documents     81

Division 88—How is a corporation’s name changed?                               82

88-1....... Corporation changing its name.......................................................... 82

88-5....... Registrar’s power to direct corporation to change its name............... 82

88-10..... If Aboriginal and Torres Strait Islander corporation becomes a registered native title body corporate     83

88-15..... If Aboriginal and Torres Strait Islander corporation ceases to be a registered native title body corporate                84

88-20..... Registrar must issue new certificate if name changes........................ 84

88-25..... Effect of name change....................................................................... 85

Part 3-5—Corporation powers and how they are exercised                      86

Division 93—Introduction                                                                                         86

93-1....... What this Part is about...................................................................... 86

Division 96—What are a corporation’s powers?                                         87

96-1....... Legal capacity and powers................................................................ 87

Division 99—How are a corporation’s powers exercised?                     88

99-1....... Agent exercising a corporation’s power to make contracts etc.......... 88

99-5....... Execution of documents (including deeds) by the corporation itself. 88

Part 3-6—Assumptions people dealing with Aboriginal and Torres Strait Islander corporations are entitled to make                                                                                                   90

Division 104—Assumptions people dealing with Aboriginal and Torres Strait Islander corporations are entitled to make                                                                                    90

104-1..... Entitlement to make assumptions...................................................... 90

104-5..... Assumptions that can be made under section 104-1.......................... 91

104-10... Information available to the public from Registrar does not constitute constructive notice       93

Part 3-7—Registered office or document access address                             94

Division 109—Introduction                                                                                      94

109-1..... What this Part is about...................................................................... 94

Division 112—Registered office                                                                             95

112-1..... General.............................................................................................. 95

112-5..... Corporation to have registered office................................................ 95

112-10... Registrar may change address of registered office to a director’s address                96

112-15... Corporation’s name must be displayed............................................. 97

112-20... Address of registered office etc......................................................... 97

Division 115—Document access address                                                          99

115-1..... Division applies to Aboriginal and Torres Strait Islander corporations registered as small or medium corporations.......................................................................................................... 99

115-5..... Corporation to have document access address.................................. 99

115-10... Registrar may change document access address to a director’s address 100

115-15... Registrar may direct corporation to change the location of its document access address          101

115-20... Address of document access address.............................................. 101

Part 3-8—Service on Aboriginal and Torres Strait Islander corporations              103

Division 120—Service on Aboriginal and Torres Strait Islander corporations                103

120-1..... Service on Aboriginal and Torres Strait Islander corporation......... 103

Chapter 4—Members and observers                                                      105

Part 4-1—Introduction                                                                                                    105

Division 130—Introduction                                                                                    105

130-1..... What this Chapter is about.............................................................. 105

Part 4-2—Members                                                                                                            106

Division 135—Introduction                                                                                    106

135-1..... What this Part is about.................................................................... 106

Division 138—Who is a member of an Aboriginal and Torres Strait Islander corporation?   107

138-1..... Meaning of member ........................................................................ 107

Division 141—Membership of Aboriginal and Torres Strait Islander corporations      108

Subdivision 141-A—Introduction                                                                       108

141-1..... Overview........................................................................................ 108

Subdivision 141-B—Ongoing requirements relating to membership that are imposed on an Aboriginal and Torres Strait Islander corporation                                                     108

141-5..... Minimum number of members requirement.................................... 108

141-10... Indigeneity requirement................................................................... 108

141-15... Age of members requirement.......................................................... 109

Subdivision 141-C—A person’s eligibility for membership of an Aboriginal and Torres Strait Islander corporation                                                                                                        109

141-20... Eligibility for membership............................................................... 109

141-25... Corporation may have other eligibility requirements for membership 110

Division 144—How to become a member of an Aboriginal and Torres Strait Islander corporation   111

144-1..... How does a person become a member?.......................................... 111

144-5..... Application to corporation............................................................... 111

144-10... Determination of applications for membership................................ 111

144-15... Fees for membership and being an observer................................... 113

Division 147—Obligations of members                                                           114

147-1..... Obligation to contribute on winding up........................................... 114

147-5..... Corporation may impose other member obligations........................ 114

147-10... Liability of corporation members.................................................... 114

Division 150—How does a person cease to be a member of an Aboriginal and Torres Strait Islander corporation?                                                                                        115

Subdivision 150-A—General                                                                                115

150-1..... Cessation of membership................................................................ 115

Subdivision 150-B—Resignation of membership                                           115

150-10... Resignation..................................................................................... 115

Subdivision 150-C—Cancellation of membership                                          116

150-15... General............................................................................................ 116

150-20... Member not eligible for membership etc. (replaceable rule—see section 60-1)        117

150-25... Member not contactable.................................................................. 118

150-30... Member is not an Aboriginal and Torres Strait Islander person...... 119

150-35... Member misbehaves....................................................................... 120

Division 153—Can there be different classes of members?                 122

153-1..... Different classes of members.......................................................... 122

Part 4-3—Observers                                                                                                          123

Division 158—Observers                                                                                         123

158-1..... What this Part is about.................................................................... 123

158-5..... Observers........................................................................................ 123

Part 4-4—Protection of members’ interests                                                        125

Division 163—Rights and remedies to protect interests of members 125

163-1..... Rights and remedies........................................................................ 125

Division 166—Oppressive conduct of affairs                                               126

166-1..... Grounds for Court order................................................................. 126

166-5..... Orders the Court can make.............................................................. 126

166-10... Who can apply for an order?........................................................... 128

166-15... Requirement for person to lodge order............................................ 128

Division 169—When may a person bring or intervene in proceedings on behalf of an Aboriginal and Torres Strait Islander corporation?                                       129

169-1..... Bringing, or intervening in, proceedings on behalf of a corporation 129

169-5..... Applying for and granting leave...................................................... 130

169-10... Substitution of another person for the person granted leave............ 131

169-15... Effect of ratification by members.................................................... 132

169-20... Leave to discontinue, compromise or settle proceedings brought, or intervened in, with leave                133

169-25... General powers of the Court........................................................... 133

169-30... Power of the Court to make costs orders........................................ 134

Division 172—What protections apply to variations or cancellations of class rights? 135

172-1..... Varying and cancelling class rights................................................. 135

172-5..... Certain actions taken to vary rights etc............................................ 136

172-10... Variation, cancellation or modification without unanimous support of class            136

172-15... Variation, cancellation or modification with unanimous support of class 137

Division 175—When may a member inspect a corporation’s books? 138

175-1..... Order for inspection of books of corporation.................................. 138

175-5..... Ancillary orders.............................................................................. 139

175-10... Disclosure of information acquired in inspection............................ 139

175-15... Corporation or directors may allow member to inspect books (replaceable rule—see section 60-1)        140

Part 4-5—Registers of members and former members                               141

Division 180—Registers of members and former members                141

180-1..... Aboriginal and Torres Strait Islander corporations to maintain register of members                141

180-5..... Information on the register of members.......................................... 141

180-10... Aboriginal and Torres Strait Islander corporations to maintain register of former members    142

180-15... Information on the register of former members............................... 142

180-20... Location and inspection of registers................................................ 143

180-22... Register of members and register of former members may be maintained in one document     143

180-25... Right to inspect and get copies........................................................ 143

180-30... Aboriginal and Torres Strait Islander corporation to make register of members available at AGM          144

180-35... Aboriginal and Torres Strait Islander corporation to give Registrar copy of register of members or register of former members.......................................................................................... 145

180-40... Correction of register of members or register of former members.. 145

180-45... Evidentiary value of registers.......................................................... 146

Division 183—Use of information on the register of members or register of former members             147

183-1..... Use of information on register of members or register of former members              147

Part 4-6—Exemption from operation of certain provisions of this Chapter          149

Division 187—Exemption from operation of certain provisions of this Chapter             149

187-1..... What this Part is about.................................................................... 149

187-5..... Exemption from certain provisions of this Chapter......................... 149

187-10... Registrar may make determination even if application is incomplete 150

187-15... Registrar’s power to make determinations...................................... 150

187-20... Criteria for determinations............................................................... 151

Chapter 5—Meetings                                                                                              153

Part 5-1—Introduction                                                                                                    153

Division 193—Introduction                                                                                    153

193-1..... What this Chapter is about.............................................................. 153

Part 5-2—General meetings                                                                                          154

Division 198—Introduction                                                                                    154

198-1..... What this Part is about.................................................................... 154

Division 201—What are the rules concerning general meetings?    155

Subdivision 201-A—Who may call general meetings?                                 155

201-1..... Director may call meetings (replaceable rule—see section 60-1)..... 155

201-5..... Request by members for directors to call general meetings............. 155

201-10... When must directors comply with members’ request?.................... 156

201-15... When must a requested meeting be held?........................................ 157

Subdivision 201-B—How to call general meetings                                         157

201-20... Amount of notice of general meetings............................................. 157

201-25... Notice of general meeting to members, officers and observers....... 158

201-30... Auditor entitled to notice and other communications....................... 160

201-35... Contents of notice of general meeting............................................. 160

Subdivision 201-C—Members’ rights to put resolutions etc. to general meeting            161

201-40... Members’ resolutions..................................................................... 161

201-45... Notice of members’ resolutions...................................................... 162

201-50... Members’ statements to be distributed............................................ 162

Subdivision 201-D—Holding general meetings                                               164

201-55... Purpose........................................................................................... 164

201-60... Time and place for general meeting................................................. 164

201-65... Technology..................................................................................... 164

201-70... Quorum........................................................................................... 164

201-75... Chairing general meeting (replaceable rule—see section 60-1)....... 165

201-80... Auditor’s right to be heard at general meetings............................... 166

201-85... Adjourned meetings........................................................................ 166

Subdivision 201-E—Proxies                                                                                 167

201-90... Who may appoint a proxy (replaceable rule—see section 60-1)...... 167

201-95... Rights of proxies............................................................................. 167

201-100. Appointing a proxy......................................................................... 168

201-105. Proxy documents............................................................................ 170

201-110. Body corporate representative......................................................... 170

Subdivision 201-F—Voting at general meetings                                             171

201-115. How many votes a member has (replaceable rule—see section 60-1) 171

201-120. Objections to right to vote (replaceable rule—see section 60-1)...... 171

201-125. How voting is carried out (replaceable rule—see section 60-1)...... 172

201-130. Matters on which a poll may be demanded..................................... 172

201-135. When a poll is effectively demanded............................................... 172

201-140. When and how polls must be taken (replaceable rule—see section 60-1) 173

Subdivision 201-G—First general meeting and annual general meetings 173

201-145. Corporation must hold first general meeting within 3 months of registration           173

201-150. Corporation must hold AGM.......................................................... 174

201-155. Extension of time for holding AGM............................................... 174

201-160. Business of AGM........................................................................... 175

201-165. Questions and comments by members on corporation management at AGM          175

201-170. Questions by members of auditors at AGM................................... 175

Division 204—Resolutions without a general meeting                            176

204-1..... Circulating resolutions.................................................................... 176

204-5..... Resolutions of 1 member corporations............................................ 177

Part 5-3—Directors’ meetings                                                                                     178

Division 209—Introduction                                                                                    178

209-1..... What this Part is about.................................................................... 178

Division 212—What are the rules concerning directors’ meetings? 179

212-1..... Constitution to provide for meetings............................................... 179

212-5..... Calling directors’ meetings (replaceable rule—see section 60-1).... 179

212-10... Use of technology........................................................................... 179

212-15... Chairing directors’ meetings (replaceable rule—see section 60-1).. 179

212-20... Quorum at directors’ meetings........................................................ 180

212-25... Passing of directors’ resolutions (replaceable rule—see section 60-1) 180

Division 215—Resolutions and declarations without meetings           181

215-1..... Circulating resolutions of corporation with more than 1 director (replaceable rule—see section 60-1)    181

215-5..... Resolutions and declarations of 1 director corporation.................... 181

Part 5-4—Minutes of meetings                                                                                    183

Division 220—Minutes of meetings                                                                    183

220-1..... What this Part is about.................................................................... 183

220-5..... Minutes........................................................................................... 183

220-10... Members’ access to minutes........................................................... 185

Part 5-5—Exemption from operation of this Chapter                                 187

Division 225—Exemption from operation of this Chapter                   187

225-1..... What this Part is about.................................................................... 187

225-5..... Exemption from the provisions of this Chapter............................... 187

225-10... Registrar may make determination even if application is incomplete 188

225-15... Registrar’s power to make determinations...................................... 188

225-20... Criteria for determinations............................................................... 189

Chapter 6—Officers                                                                                                 190

Part 6-1—Introduction                                                                                                    190

Division 235—Introduction                                                                                    190

235-1..... What this Chapter is about.............................................................. 190

Part 6-2—Appointment, remuneration and cessation of appointment of directors           191

Division 240—Introduction                                                                                    191

240-1..... What this Part is about.................................................................... 191

Division 243—Number of directors                                                                   192

243-1..... Minimum number of directors........................................................ 192

243-5..... Maximum number of directors........................................................ 192

Division 246—Appointment of directors                                                        193

246-1..... Eligibility for appointment as a director........................................... 193

246-5..... Majority of director requirements.................................................... 193

246-10... Consent to act as director................................................................ 194

246-15... Corporation may appoint a director (replaceable rule—see section 60-1) 194

246-20... Directors may appoint other directors to make up a quorum (replaceable rule—see section 60-1)           194

246-25... Term of appointment....................................................................... 195

246-30... Alternate directors (replaceable rule—see section 60-1).................. 196

246-35... Effectiveness of acts by directors.................................................... 196

Division 249—Resignation, retirement or removal of directors       197

249-1..... How does a person cease to be a director?...................................... 197

249-5..... Director may resign......................................................................... 197

249-10... Removal by members...................................................................... 197

249-15... Removal by other directors............................................................. 199

Division 252—Remuneration of directors                                                     202

252-1..... Remuneration.................................................................................. 202

252-5..... Members may obtain information about directors’ remuneration.... 202

Part 6-3—Appointment of secretaries and contact persons                      205

Division 257—Appointment of secretaries and contact persons        205

257-1..... What this Part is about.................................................................... 205

257-5..... Requirement to have a secretary or contact person.......................... 205

257-10... Who may be a secretary or contact person...................................... 206

257-15... Consent to act as secretary or contact person.................................. 206

257-20... How a secretary or contact person is appointed.............................. 207

257-25... Director to be contact person in certain circumstances.................... 207

257-30... Contact person must pass on communications received.................. 207

257-35... Secretary must pass on communications received........................... 208

257-40... Effectiveness of acts by secretaries................................................. 208

257-45... Terms and conditions of office for secretaries (replaceable rule—see section 60-1) 209

257-50... Terms and conditions of contact person’s appointment (replaceable rule—see section 60-1)   209

Part 6-4—Duties and powers of directors and other officers and employees        210

Division 262—Introduction                                                                                    210

262-1..... What this Part is about.................................................................... 210

Division 265—General duties                                                                                211

265-1..... Care and diligence—civil obligation only........................................ 211

265-5..... Good faith—civil obligations.......................................................... 212

265-10... Use of position—civil obligations................................................... 213

265-15... Use of information—civil obligations............................................. 213

265-20... Acts done to comply with Native Title legislation obligations......... 214

265-25... Good faith, use of position and use of information—criminal offences 214

265-30... Interaction of sections 265-1 to 265-25 with other laws etc............ 216

265-35... Directors of wholly-owned subsidiaries......................................... 216

265-40... Responsibility of secretaries for certain contraventions................... 216

265-45... Meaning of reasonable reliance on information or advice provided by others          217

265-50... Responsibility for actions of delegate.............................................. 218

Division 268—Duties in relation to disclosure of, and voting on matters involving, material personal interests                                                                                                   220

268-1..... Material personal interest—director’s duty to disclose.................... 220

268-5..... Interest as common law holder of native title.................................. 222

268-10... Director may give other directors standing notice about an interest. 222

268-15... Interaction of sections 268-1 and 268-10 with other laws etc......... 224

268-20... Restrictions on voting..................................................................... 224

268-25... Registrar’s power to make declarations and class orders................ 226

Division 271—Duty to discharge certain trust liabilities                        228

271-1..... Directors liable for debts and other obligations incurred by corporation as trustee   228

Division 274—Powers of directors                                                                     229

274-1..... Powers of directors (replaceable rule—see section 60-1)................ 229

274-5..... Negotiable instruments (replaceable rule—see section 60-1).......... 229

274-10... Delegation....................................................................................... 229

274-15... Right of access to corporation books.............................................. 230

Part 6-5—Disqualification from managing corporations                           232

Division 279—Disqualification from managing corporations             232

279-1..... Disqualified person not to manage corporations............................. 232

279-5..... Automatic disqualification............................................................... 233

279-10... Extension of period of automatic disqualification............................ 235

279-15... Court power of disqualification—contravention of civil penalty provision              235

279-20... Court power of disqualification—insolvency and non-payment of debts 236

279-25... Court power of disqualification—repeated contraventions of Act... 237

279-30... Registrar’s power of disqualification.............................................. 238

279-35... Court power to grant leave.............................................................. 240

Part 6-6—Member approval needed for related party benefit               242

Division 284—Need for member approval                                                    242

284-1..... Need for member approval for financial benefit.............................. 242

284-5..... Consequences of breach.................................................................. 242

284-10... Exemptions..................................................................................... 243

Division 287—Exceptions to the requirement for member approval 244

287-1..... Remuneration and reimbursement for officer or employee.............. 244

287-5..... Benefit to or by closely-held subsidiary.......................................... 245

287-10... Benefits to members that do not discriminate unfairly..................... 246

287-12... Benefits given to comply with Native Title legislation obligations.. 246

287-15... Court order...................................................................................... 246

Division 290—Procedure for obtaining member approval                  247

290-1..... Resolution may specify matters by class or kind............................. 247

290-5..... Corporation must lodge material that will be put to members with the Registrar      247

290-10... Requirements for explanatory statement to members...................... 248

290-15... Registrar may comment on proposed resolution............................. 249

290-20... Requirements for notice of meeting................................................. 249

290-25... Other material put to members........................................................ 250

290-30... Proposed resolution cannot be varied.............................................. 251

290-35... Voting by or on behalf of related party interested in proposed resolution                251

290-40... Voting on the resolution.................................................................. 252

290-45... Notice of resolution to be lodged.................................................... 253

290-50... Declaration by court of substantial compliance............................... 253

Division 293—Related parties and financial benefits                               254

293-1..... Related parties................................................................................. 254

293-5..... Giving a financial benefit................................................................ 255

Division 296—Interaction with other rules                                                   257

296-1..... General duties still apply................................................................. 257

Part 6-7—Public information about directors, secretaries and contact persons 258

Division 301—Introduction                                                                                    258

301-1..... What this Part is about.................................................................... 258

Division 304—Information to be provided                                                    259

304-1..... Director, alternate director, secretary or contact person may notify the Registrar of resignation or retirement          259

304-5..... Notice of name and address of directors and secretaries to the Registrar  259

304-10... Director, alternate director, secretary and contact person must give information to corporation               261

304-15... Address for officers........................................................................ 261

Division 307—Registrar may ask for information                                   263

307-1..... Registrar’s power to ask for information about person’s position as director, secretary or contact person              263

Part 6-8—Exemption from operation of certain provisions of this Chapter          264

310-1..... What this Part is about.................................................................... 264

310-5..... Exemption from certain provisions of this Chapter......................... 264

310-10... Registrar may make determination even if application is incomplete 265

310-15... Registrar’s power to make determinations...................................... 265

310-20... Criteria for determinations............................................................... 266

Chapter 7—Record keeping, reporting requirements and books    268

Part 7-1—Introduction                                                                                                    268

Division 317—Introduction                                                                                    268

317-1..... What this Chapter is about.............................................................. 268

Part 7-2—Record keeping requirements                                                              269

Division 322—Record keeping requirements                                               269

322-1..... What this Part is about.................................................................... 269

322-5..... Obligation to keep copy of constitution and records about officers, contact person, etc.          270

322-10... Obligation to keep financial records................................................ 270

322-15... Physical format............................................................................... 271

322-20... Place where records are kept........................................................... 271

322-25... Director access................................................................................ 272

Part 7-3—Reporting requirements                                                                           273

Division 327—Overview of reporting obligations                                     273

327-1..... Reports that an Aboriginal and Torres Strait Islander corporation must prepare and lodge      273

Division 330—General report for each financial year                            274

330-1..... Aboriginal and Torres Strait Islander corporation must prepare a general report each financial year        274

330-5..... Contents of general report............................................................... 274

330-10... General report to be lodged with Registrar...................................... 275

Division 333—Financial and other reports required by the regulations                276

333-1..... What this Division is about............................................................. 276

333-5..... Regulations may require financial reports, directors’ reports and other reports to be prepared 276

333-10... Contents of reports.......................................................................... 278

333-15... Other requirements in relation to report........................................... 279

333-20... Aboriginal and Torres Strait Islander corporation to obtain audit report if audit required         280

Division 336—Registrar may increase reporting requirements        281

336-1..... Registrar may require additional report, or otherwise increase reporting requirements, for particular corporation   281

336-5..... Registrar may require additional reports, or otherwise increase reporting requirements, for class of corporation    283

Division 339—Audit of financial reports                                                        286

Subdivision 339-A—Introduction                                                                       286

339-1..... What this Division is about............................................................. 286

339-5..... Application of Division................................................................... 286

339-10... When financial report required to comply with accounting standards 287

339-15... When audit required to be conducted in accordance with auditing standards            287

339-20... Lead and review auditors................................................................ 287

339-25... Professional members of the audit team.......................................... 288

Subdivision 339-B—Conduct of the audit                                                         288

339-30... Auditor to form opinion.................................................................. 288

339-35... Auditor obligations in relation to auditing standards....................... 289

339-40... Auditor’s report.............................................................................. 289

339-45... Other requirements in relation to auditor’s report............................ 290

339-50... Auditor’s independence declaration................................................ 291

339-55... Audit working papers to be retained for 7 years............................. 293

Subdivision 339-C—Qualification, experience and registration                296

339-60... Qualification and experience: individual auditor.............................. 296

339-65... Qualification and experience: audit firm.......................................... 297

339-70... Registration requirements for appointment of company as auditor.. 298

Subdivision 339-D—Auditor independence                                                      300

339-75... Independence of auditors: application of Corporations Act auditor independence provisions  300

339-80... Independence of auditors: alternative independence requirements... 301

Subdivision 339-E—Auditor’s powers and duties                                           302

339-85... Auditor’s power to obtain information............................................ 302

339-90... Reporting to the Registrar............................................................... 302

339-95... Assisting auditor............................................................................. 305

Subdivision 339-F—Appointment and removal of auditors                        306

339-100. Appointment and removal of auditors............................................. 306

Division 342—Financial reporting to members                                          307

342-1..... What this Division is about............................................................. 307

342-5..... Annual financial reporting to members........................................... 307

342-10... Deadline for giving member copy of report.................................... 309

Division 345—Consolidated financial report                                                310

345-1..... Directors and officers of controlled entity to give information........ 310

345-5..... Auditor’s power to obtain information from controlled entity......... 310

345-10... Controlled entity to assist auditor.................................................... 310

345-15... Application of sections 345-1 to 345-10 to entity that has ceased to be controlled   311

Division 348—Lodging reports                                                                            312

348-1..... Lodging annual reports with the Registrar...................................... 312

348-5..... Relodgment if report amended after lodgment................................. 312

Part 7-4—Registrar may exempt from record keeping and reporting requirements       314

Division 353—Registrar may exempt from record keeping and reporting requirements          314

353-1..... What this Part is about.................................................................... 314

353-3..... Exemption from the provisions of this Chapter............................... 314

353-5..... Registrar may make determination even if application is incomplete 315

353-10... Registrar’s power to make determinations...................................... 315

Part 7-5—Criteria for determining level of reporting requirements   317

Division 358—Criteria for determining level of reporting requirements             317

358-1..... What this Part is about.................................................................... 317

358-5..... Criteria for determinations about level of reporting requirements.... 317

358-10... Reporting obligations...................................................................... 318

Part 7-6—Sanctions for contraventions of record keeping and reporting requirements               320

Division 363—Sanctions for contraventions of record keeping and reporting requirements    320

363-1..... Sanctions......................................................................................... 320

Part 7-7—Modifications of record keeping and reporting requirements by regulations                321

Division 368—Modifications of record keeping and reporting requirements by regulations    321

368-1..... Modification by regulations............................................................ 321

Part 7-8—Books                                                                                                                   322

Division 373—Introduction                                                                                    322

373-1..... What this Part is about.................................................................... 322

Division 376—When and where may books be inspected?                   323

376-1..... Inspection of books......................................................................... 323

376-5..... Translations of instruments and books............................................ 324

376-10... Court may compel compliance........................................................ 325

376-15... Admissibility of books in evidence................................................. 325

376-20... Form of books................................................................................ 325

376-25... Protection of books......................................................................... 326

376-30... Evidentiary value............................................................................. 327

376-35... Falsification of books...................................................................... 327

Chapter 8—Civil consequences of contravening civil penalty provisions               329

Division 386—Civil consequences of contravening civil penalty provisions        329

386-1..... Declarations of contravention.......................................................... 329

386-5..... Declaration of contravention is conclusive evidence....................... 330

386-10... Pecuniary penalty orders................................................................. 330

386-15... Compensation orders—civil penalty provisions.............................. 330

386-20... Who may apply for a declaration or order....................................... 331

386-25... Time limit for application for a declaration or order........................ 332

386-30... Civil evidence and procedure rules for declarations of contravention and civil penalty orders 332

386-35... Civil proceedings after criminal proceedings................................... 332

386-40... Criminal proceedings during civil proceedings............................... 332

386-45... Criminal proceedings after civil proceedings................................... 333

386-50... Evidence given in proceedings for penalty not admissible in criminal proceedings  333

386-55... Registrar requiring person to assist................................................. 333

386-60... Relief from liability for contravention of civil penalty provision..... 335

Chapter 9—Lodgments and registers                                                    337

Part 9-1—Introduction                                                                                                    337

Division 396—Introduction                                                                                    337

396-1..... What this Chapter is about.............................................................. 337

Part 9-2—Lodgments with the Registrar                                                             338

Division 401—Introduction                                                                                    338

401-1..... What this Part is about.................................................................... 338

Division 404—What is the form in which documents may be lodged?   339

404-1..... Forms for documents to be lodged with the Registrar..................... 339

404-5..... Signing documents lodged with the Registrar................................. 339

404-10... Documents lodged with the Registrar electronically........................ 339

404-15... Relodging of lost registered documents.......................................... 340

Division 407—Registrar’s powers                                                                      342

407-1..... Registrar may refuse to receive or register documents.................... 342

407-5..... Registrar may require additional information.................................. 342

407-10... Registrar may require information from persons on a register........ 343

407-15... Telephone or email notice of certain changes.................................. 343

407-20... Registrar may destroy or dispose of lodged documents.................. 344

Division 410—Courts power if documents not lodged                            345

410-1..... Court may make certain orders........................................................ 345

Part 9-3—Registers                                                                                                            347

Division 415—Introduction                                                                                    347

415-1..... What this Part is about.................................................................... 347

Division 418—Registers to be kept                                                                    348

418-1..... Registers......................................................................................... 348

418-5..... Form of registers............................................................................. 348

418-10... Register of Aboriginal and Torres Strait Islander Corporations...... 348

418-15... Register of Disqualified Officers.................................................... 348

Division 421—What information may a person obtain from the Registrar?     349

421-1..... Inspection and production of records.............................................. 349

421-5..... Requests and certification of copy or extract etc.............................. 350

Division 424—Validity and use of information etc. obtained from a register    352

424-1..... Validity of copy or extract............................................................... 352

424-5..... Use in court proceedings etc. of documents issued by Registrar..... 352

424-10... Registrar’s certificate that person was a director etc........................ 354

Chapter 10—Regulation and enforcement                                      355

Part 10-1—Introduction                                                                                                  355

Division 434—Introduction                                                                                    355

434-1..... What this Chapter is about.............................................................. 355

Part 10-2—Regulation of Aboriginal and Torres Strait Islander corporations    356

Division 439—Regulation of Aboriginal and Torres Strait Islander corporations          356

439-1..... What this Part is about.................................................................... 356

439-5..... Registrar may convene meetings of interested persons................... 356

439-10... Registrar may call a general meeting (other than an AGM)............. 357

439-15... Registrar may call an AGM............................................................ 359

439-20... Registrar may require compliance with Act etc............................... 360

Part 10-3—Enforcement                                                                                                 362

Division 444—Introduction                                                                                    362

444-1..... What this Part is about.................................................................... 362

Division 447—Authorised officers                                                                      363

447-1..... Appointment of authorised officers................................................. 363

447-5..... Identity cards................................................................................... 363

Division 450—Purposes for which powers under this Part may be exercised    364

450-1..... Purposes for which power under this Part may be exercised.......... 364

Division 453—Examination of books and persons                                    365

453-1..... Examination of books..................................................................... 365

453-5..... Production of books or attendance to answer questions.................. 366

453-10... Remuneration of authorised officer................................................. 367

Division 456—Warrants for books not produced                                      369

Subdivision 456-A—Warrants applied for in person                                    369

456-1..... Application for warrant to seize books not produced...................... 369

456-5..... Grant of warrant.............................................................................. 369

456-10... Powers where books produced or seized........................................ 370

Subdivision 456-B—Warrants by telephone or other electronic means   372

456-15... Applying for warrants by telephone or other electronic means....... 372

456-20... Issuing warrants by telephone etc................................................... 373

456-25... Unsigned warrants by telephone etc. in court proceedings.............. 374

Subdivision 456-C—Offences relating to warrants by telephone or other electronic means      374

456-30... Offence for stating incorrect names in warrants by telephone etc.... 374

456-35... Offence for unauthorised form of warrant...................................... 375

456-40... Offence for execution etc. of unauthorised form of warrant............ 375

456-45... Offence for giving unexecuted form of warrant.............................. 375

Subdivision 456-D—Warrant details to be given to occupier                      376

456-50... Details of warrant to be given to occupier etc.................................. 376

Part 10-4—Offences relating to regulatory and enforcement powers of Registrar           377

Division 461—Offences relating to regulatory and enforcement powers of Registrar                 377

461-1..... Obstructing Registrar or interfering with meeting called by Registrar etc.                377

461-5..... False information............................................................................ 378

461-10... Concealing books relevant to investigation..................................... 378

461-15... Self-incrimination............................................................................ 379

Part 10-5—Protection for whistleblowers                                                            380

Division 466—Which disclosures qualify for protection under this Part?            380

466-1..... Disclosures qualifying for protection.............................................. 380

Division 469—Effects of disclosure                                                                    382

469-1..... Disclosure that qualifies for protection not actionable etc................ 382

469-5..... Victimisation prohibited.................................................................. 383

469-10... Right to compensation..................................................................... 384

Division 472—Confidentiality requirement                                                   385

472-1..... Confidentiality requirements for corporations, corporation officers and employees and auditors             385

Chapter 11—External administration                                                  387

Part 11-1—Introduction                                                                                                  387

Division 482—Introduction                                                                                    387

482-1..... What this Chapter is about.............................................................. 387

Part 11-2—Special administration                                                                            389

Division 487—Special administration of Aboriginal and Torres Strait Islander corporation   389

487-1..... Registrar may put Aboriginal and Torres Strait Islander corporation under special administration          389

487-5..... Grounds for special administration................................................. 389

487-10... Show cause notice procedure.......................................................... 392

487-15... Extension of period of special administration.................................. 393

487-20... Registrar may terminate special administration................................ 393

487-25... References to corporation under special administration................... 393

Division 490—Appointment of special administrator                              395

490-1..... Registrar may appoint special administrator.................................... 395

490-5..... Period of appointment..................................................................... 395

Division 493—Notice requirements                                                                   396

493-1..... Notice of special administration determination or appointment of special administrator           396

Division 496—Effect of appointment of special administrator on officers of the corporation 398

496-1..... General rule that offices of directors and secretary vacated when special administrator appointed           398

496-5..... Registrar may determine that offices not vacated in certain circumstances                398

496-10... Powers of officers can only be exercised by, or with the consent of, special administrator      399

496-15... Only special administrator can deal with corporation’s property..... 400

496-20... Order for compensation where officer involved in void transaction 401

Division 499—Function, duties and powers of special administrator 403

499-1..... Function of special administrator.................................................... 403

499-5..... Powers of special administrator...................................................... 403

499-10... Applying Corporations Act provisions to Aboriginal and Torres Strait Islander corporation that is under special administration.................................................................................. 404

Division 502—Special administrator to report to Registrar               406

502-1..... Report to Registrar.......................................................................... 406

Division 505—Termination of special administrator’s appointment 407

505-1..... Termination of appointment of special administrator....................... 407

505-5..... Grounds for terminating appointment............................................. 408

505-10... Registrar to appoint new special administrator in certain circumstances 408

Division 508—Transition to normal control of the corporation’s affairs at end of special administration                                                                                                                     409

508-1..... Special administrator to ensure that there will be directors when corporation ceases to be under special administration........................................................................................................ 409

508-5..... Election of directors to take over affairs of corporation when corporation ceases to be under special administration........................................................................................................ 410

Division 511—Miscellaneous                                                                                 411

511-1..... Remuneration of special administrator............................................ 411

Part 11-3—Receivers, and other controllers, of property of corporations              412

Division 516—Receivers, and other controllers, of property of corporations   412

516-1..... Applying Corporations Act receiver provisions to Aboriginal and Torres Strait Islander corporations   412

Part 11-4—Administration of an Aboriginal and Torres Strait Islander corporation’s affairs with a view to executing a deed of corporation arrangement                         414

Division 521—Administration of an Aboriginal and Torres Strait Islander corporation’s affairs with a view to executing a deed of corporation arrangement 414

521-1..... Applying Corporations Act administration provisions to Aboriginal and Torres Strait Islander corporations         414

521-5..... Administrator’s capacity to act as trustee........................................ 415

521-10... Corporations Act administrator cannot be appointed if special administrator appointed           415

521-15... Effect of appointment of special administrator on Corporations Act administrator   416

Part 11-5—Winding up                                                                                                   417

Division 526—Winding up                                                                                      417

526-1..... Court may order winding up........................................................... 417

526-5..... Grounds for Court ordered winding up.......................................... 417

526-10... Acts etc. done to comply with Native Title legislation requirement. 419

526-15... Who may apply to court for winding up order................................ 419

526-20... Voluntary winding up..................................................................... 421

526-25... Distribution of surplus assets in winding up by Court.................... 422

526-30... Distribution of surplus assets in voluntary winding up................... 423

526-35... Applying Corporations Act winding up provisions to Aboriginal and Torres Strait Islander corporations              424

526-40... Application of Corporations Act pre-winding up provisions.......... 426

Part 11-6—Insolvent trading                                                                                        428

Division 531—Insolvent trading                                                                          428

531-1..... Applying Corporations Act insolvent trading provisions to Aboriginal and Torres Strait Islander corporations     428

531-5..... Section 588G of Corporations Act prevails over conflicting Native Title legislation obligations             429

Part 11-7—Employees’ entitlements                                                                        430

Division 536—Employees’ entitlements                                                          430

536-1..... Applying Corporations Act employees’ entitlements provisions to Aboriginal and Torres Strait Islander corporations........................................................................................................ 430

Chapter 12—Transfer of registration, deregistration and unclaimed property               432

Part 12-1—Transfer of registration to another system                                432

Division 540—Transfer of registration                                                           432

540-1..... Transferring registration.................................................................. 432

540-5..... Applying to transfer registration..................................................... 432

540-10... Registrar makes transfer of registration declaration......................... 432

540-15... Registrar to deregister corporation.................................................. 433

Part 12-2—Deregistration                                                                                              434

Division 546—Deregistration                                                                                434

546-1..... Deregistration—voluntary............................................................... 434

546-5..... Deregistration—Registrar initiated.................................................. 435

546-10... Deregistration—following amalgamation or winding up................ 436

546-15... Registered native title body corporate.............................................. 437

546-20... Effect of deregistration.................................................................... 437

546-25... What the Registrar does with the property...................................... 439

546-30... Registrar’s power to fulfil outstanding obligations of deregistered corporation       440

546-35... Claims against insurers of deregistered corporation........................ 440

546-40... Reinstatement.................................................................................. 440

546-45... Regulations may modify Division in relation to statutory Indigenous land trusts     442

Part 12-3—Unclaimed property                                                                                 443

Division 551—Unclaimed property                                                                   443

551-1..... Unclaimed property......................................................................... 443

551-5..... Registrar to deal with unclaimed property....................................... 443

551-10... Registrar and Commonwealth not liable to pay calls on shares etc.. 443

551-15... Disposition of money that is unclaimed property etc....................... 444

551-20... Establishment of the Aboriginal and Torres Strait Islander Corporations Unclaimed Money Account    444

551-25... Credits of amounts to Account........................................................ 444

551-30... Purposes of Account....................................................................... 444

551-35... Claims of disposition of money to incorrect payee.......................... 445

551-40... Commonwealth or Registrar not liable for loss or damage.............. 446

Chapter 13—Offences                                                                                            447

Part 13-1—Offences about false or misleading statements etc.               447

Division 561—Offences about false or misleading statements etc.   447

561-1..... False or misleading statements........................................................ 447

561-5..... False information etc....................................................................... 449

Part 13-2—General matters relating to offences                                              451

Division 566—General matters relating to offences                                451

566-1..... Penalties for bodies corporate......................................................... 451

566-5..... Penalty notices................................................................................ 451

566-10... Continuing offences........................................................................ 454

566-15... Time for instituting criminal proceedings........................................ 457

566-20... Privilege against self-incrimination not available to bodies corporate in certain proceedings    458

566-25... Certain persons to assist in prosecutions......................................... 458

Chapter 14—Courts and proceedings                                                  460

Part 14-1—Powers of courts                                                                                        460

Division 576—Powers of courts                                                                           460

576-1..... Power to grant relief........................................................................ 460

576-5..... Power of Court to give directions with respect to meetings ordered by the Court    461

576-10... Appeals from decisions of receivers, liquidators etc....................... 461

576-15... Irregularities.................................................................................... 462

576-20... Power of Court to prohibit payment or transfer of money, financial products or other property              465

576-25... Injunctions...................................................................................... 467

576-30... Effect of sections 576-20 and 576-25............................................. 469

576-35... Power of Court to punish for contempt of Court............................ 469

Part 14-2—Proceedings                                                                                                   471

Division 581—Proceedings                                                                                     471

581-1..... The Registrar’s power to intervene in proceedings......................... 471

581-5..... Civil proceedings not to be stayed................................................... 471

581-10... Standard of proof............................................................................ 471

581-15... Evidence of contravention............................................................... 472

581-20... Costs............................................................................................... 472

581-25... Vesting of property......................................................................... 473

Part 14-3—Jurisdiction and procedure of courts                                            475

Division 586—Civil jurisdiction                                                                           475

Subdivision 586-A—Introduction                                                                       475

586-1..... Operation of Division..................................................................... 475

Subdivision 586-B—Conferral of jurisdiction                                                476

586-5..... Jurisdiction of Federal Court and State and Territory Supreme Courts 476

586-10... Jurisdiction of Family Court and State Family Courts.................... 477

586-15... Jurisdiction of courts (decisions to prosecute and related criminal justice process decisions made by Commonwealth officers)........................................................................................... 477

586-20... Jurisdiction of lower courts............................................................. 479

586-25... Appeals........................................................................................... 480

586-30... Courts to act in aid of each other..................................................... 481

Subdivision 586-C—Transfer of proceedings                                                 481

586-35... Transfer of proceedings by the Federal Court and State and Territory Supreme Courts           481

586-40... Transfer of proceedings by Family Court and State Family Courts 483

586-45... Transfer of proceedings in lower courts.......................................... 485

586-50... Further matters for a court to consider when deciding whether to transfer a proceeding          486

586-55... Transfer may be made at any stage.................................................. 486

586-60... Transfer of documents.................................................................... 486

586-65... Conduct of proceedings.................................................................. 487

586-70... Rights of appearance....................................................................... 488

586-75... Limitation on appeals...................................................................... 488

Subdivision 586-D—Rules of court                                                                     488

586-80... Rules of the Federal Court.............................................................. 488

586-85... Rules of the Supreme Court............................................................ 489

586-90... Rules of the Family Court............................................................... 489

Division 589—Criminal jurisdiction                                                                  491

589-1..... Operation of Division..................................................................... 491

589-5..... Jurisdiction of courts....................................................................... 491

589-10... Laws to be applied.......................................................................... 494

Chapter 15—Administration                                                                          495

Part 15-1—Introduction                                                                                                  495

Division 599—Introduction                                                                                    495

599-1..... What this Chapter is about.............................................................. 495

Part 15-2—Protection of information                                                                     496

Division 604—Protection of information                                                        496

604-1..... What this Part is about.................................................................... 496

604-5..... Protected information...................................................................... 496

604-10... Registrar’s obligations in relation to protected information............. 497

604-15... Special administrator’s obligations in relation to protected information 497

604-20... Consultant’s obligations in relation to protected information.......... 497

604-25... Authorised use or disclosure........................................................... 498

Part 15-3—Protection from liability for Registrar, Minister etc.           502

Division 609—Protection from liability for Registrar, Minister etc. 502

609-1..... Protection from liability for Minister, Registrar etc......................... 502

Part 15-4—Review of decisions                                                                                  503

Division 614—Introduction                                                                                    503

614-1..... What this Part is about.................................................................... 503

Division 617—Reviewable decisions                                                                  504

617-1..... Reviewable decisions...................................................................... 504

617-5..... Deadlines for making reviewable decisions.................................... 509

617-10... Notice of reviewable decision and review rights............................. 509

Division 620—Internal review of reviewable decisions                          511

620-1..... Registrar may reconsider reviewable decisions on own initiative.... 511

620-5..... Reconsideration of reviewable decisions......................................... 511

Division 623—AAT review of reviewable decisions                                 513

623-1..... AAT review of reviewable decisions.............................................. 513

Part 15-5—Fees                                                                                                                    514

Division 628—Fees                                                                                                      514

628-1..... Fees................................................................................................. 514

628-5..... Lodgment of document without payment of fee.............................. 514

628-10... Doing act without payment of fee................................................... 514

628-15... Effect of sections 628-5 and 628-10............................................... 515

628-20... Debt due to the Commonwealth...................................................... 515

628-25... Payment of fee does not give right to inspect or search................... 515

Part 15-6—Regulations                                                                                                    516

Division 633—Regulations                                                                                      516

633-1..... General regulation making power................................................... 516

633-5..... Regulations concerning registered native title bodies corporate....... 516

Part 15-7—Approved forms                                                                                         519

Division 638—Approved forms                                                                           519

638-1..... Registrar may approve forms.......................................................... 519

Chapter 16—Registrar and Deputy Registrars of Aboriginal and Torres Strait Islander Corporations                                                                                   521

Part 16-1—Introduction                                                                                                  521

Division 648—Introduction                                                                                    521

648-1..... What this Chapter is about.............................................................. 521

Part 16-2—Appointment of the Registrar and Deputy Registrars       522

Division 653—Appointment of Registrar and Deputy Registrars    522

653-1..... Registrar of Aboriginal and Torres Strait Islander Corporations..... 522

653-5..... Deputy Registrars of Aboriginal and Torres Strait Islander Corporations                522

Part 16-3—Registrar’s functions and powers                                                   523

Division 658—Registrar’s functions and powers                                       523

658-1..... Functions of the Registrar............................................................... 523

658-5..... Aims of the Registrar...................................................................... 524

658-10... Powers of the Registrar................................................................... 524

658-15... Registrar to have a seal.................................................................... 525

658-20... Judicial notice of certain matters...................................................... 525

Part 16-4—Matters concerning the Registrar’s and Deputy Registrars’ appointments 526

Division 663—Matters concerning the Registrar’s and Deputy Registrars’ appointments        526

663-1..... Registrar’s remuneration................................................................. 526

663-5..... Resignation..................................................................................... 526

663-10... Termination of Registrar’s appointment.......................................... 526

663-15... Termination of Deputy Registrar’s appointment............................. 527

663-20... Disclosure of interests..................................................................... 527

663-25... Acting appointments....................................................................... 527

663-30... Leave of absence............................................................................. 528

663-35... Outside employment....................................................................... 528

Part 16-5—Delegation                                                                                                      529

Division 668—Delegation                                                                                        529

668-1..... Delegation by Registrar................................................................... 529

668-5..... Sub-delegation by Deputy Registrar............................................... 529

Part 16-6—Staffing                                                                                                            531

Division 673—Staffing                                                                                              531

673-1..... Staff assisting the Registrar and Deputy Registrar.......................... 531

673-5..... Engagement of consultants etc. by the Registrar............................. 531

Chapter 17—Interpreting this Act                                                            532

Part 17-1—Meaning of some important concepts                                           532

Division 683—Directors and officers of Aboriginal and Torres Strait Islander corporations 532

683-1..... Meaning of director and officer ...................................................... 532

Division 686—Associates                                                                                         535

686-1..... Effect of Division............................................................................ 535

686-5..... Associates of bodies corporate........................................................ 535

686-10... General............................................................................................ 535

686-15... Exclusions....................................................................................... 536

Division 689—Subsidiaries and control                                                           537

689-1..... What is a subsidiary........................................................................ 537

689-5..... Control of a body corporate’s board............................................... 537

689-10... Matters to be disregarded................................................................ 538

689-15... References in this Division to a subsidiary..................................... 539

689-20... Related bodies corporate................................................................. 539

689-25... Control............................................................................................ 539

Part 17-2—Interpretation of other expressions                                                541

Division 694—Interpretation of other expressions                                   541

694-1..... Giving information.......................................................................... 541

694-5..... Doing acts....................................................................................... 541

694-10... Signing............................................................................................ 541

694-15... Business affairs of a body corporate............................................... 541

694-20... Business affairs of a natural person................................................ 541

694-25... Business affairs of a partnership..................................................... 542

694-30... Business affairs of a trust................................................................ 543

694-35... Meaning of court and Court............................................................ 543

694-40... Entities............................................................................................ 544

694-45... Entities connected with a corporation (including an Aboriginal and Torres Strait Islander corporation)  544

694-50... Extension of period for doing an act............................................... 546

694-55... Involvement in contraventions........................................................ 546

694-60... Possession...................................................................................... 546

694-65... Public document of a body corporate.............................................. 547

694-70... Receivers and managers.................................................................. 548

694-75... Securities......................................................................................... 548

694-80... Solvency and insolvency................................................................. 548

694-85... Meaning of chief executive officer function ...................................... 549

694-90... Applications to be in writing........................................................... 550

694-95... Effect of certain contraventions of this Act..................................... 550

694-100. Effect of provisions empowering a person to require or prohibit conduct                550

694-105. Calculation of time.......................................................................... 550

694-110. Performance of functions by Registrar or Deputy Registrar includes reference to delegate etc.               551

Part 17-3—Dictionary                                                                                                      552

Division 700—Dictionary                                                                                        552

700-1..... Dictionary....................................................................................... 552

 



This Bill originated in the House of Representatives; and, having this day passed, is now ready for presentation to the Senate for its concurrence.

I.C. HARRIS

Clerk of the House of Representatives

House of Representatives

11 October 2006

 

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 Transfer of registration, 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