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Corporations (Aboriginal and Torres Strait Islander) Bill 2006

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

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

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

             (1)  On the registration of an Aboriginal and Torres Strait Islander corporation, the Registrar must register the corporation as a small, medium or large corporation.

Note:          The classification determines the reports the corporation has to prepare (see Chapter 7) and whether or not the corporation must have a registered office and a corporation secretary.

             (2)  The Registrar may register the corporation as a small corporation only if:

                     (a)  the application for registration indicates; or

                     (b)  the Registrar is otherwise satisfied;

that the corporation is likely to be a small corporation in respect of its first financial year.

Note:          Subsection 37-10(1) sets out the criteria for determining whether the corporation is a small corporation for a particular financial year.

             (3)  The Registrar may register the corporation as a medium corporation only if:

                     (a)  the application for registration indicates; or

                     (b)  the Registrar is otherwise satisfied;

that the corporation is likely to be a medium corporation in respect of its first financial year.

Note:          Subsection 37-10(2) sets out the criteria for determining whether the corporation is a medium corporation for a particular financial year.

             (4)  The Registrar may register the corporation as a large corporation only if:

                     (a)  the application for registration indicates; or

                     (b)  the Registrar is otherwise satisfied;

that the corporation is likely to be a large corporation in respect of its first financial year.

Note:          Subsection 37-10(3) sets out the criteria for determining whether the corporation is a large corporation for a particular financial year.

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

             (1)  If the Registrar is satisfied that an Aboriginal and Torres Strait Islander corporation that is registered as a small corporation was in fact a medium or large corporation for the most recent financial year, the Registrar may alter the corporation’s registration so that the corporation is registered as a medium or large corporation.

             (2)  If the Registrar is satisfied that an Aboriginal and Torres Strait Islander corporation that is registered as a medium corporation was in fact a small or large corporation for the most recent financial year, the Registrar may alter the corporation’s registration so that the corporation is registered as a small or large corporation.

             (3)  If the Registrar is satisfied that an Aboriginal and Torres Strait Islander corporation that is registered as a large corporation was in fact a small or medium corporation for the most recent financial year, the Registrar may alter the corporation’s registration so that the corporation is registered as a small or medium corporation.

             (4)  An alteration to an Aboriginal and Torres Strait Islander corporation’s registration made under subsection (1), (2) or (3) is not a legislative instrument.

             (5)  The Registrar must notify an Aboriginal and Torres Strait Islander corporation in writing of an alteration made under this section.

37-10   Small, medium and large corporations

Small corporations

             (1)  An Aboriginal and Torres Strait Islander corporation is a small corporation for a financial year if it satisfies at least 2 of the following paragraphs:

                     (a)  the consolidated gross operating income for the financial year of the corporation and the entities it controls (if any) is less than the amount prescribed in the regulations for the purposes of this paragraph;

                     (b)  the value of the consolidated gross assets at the end of the financial year of the corporation and the entities it controls (if any) is less than the amount prescribed in the regulations for the purposes of this paragraph;

                     (c)  the corporation and the entities it controls (if any) have, at the end of the financial year, fewer employees than the number of employees prescribed for the purposes of this paragraph.

Note:          A small corporation generally has reduced financial reporting requirements (see Chapter 7).

Medium corporations

             (2)  Subject to subsection (3), an Aboriginal and Torres Strait Islander corporation is a medium corporation for a financial year if it satisfies at least 2 of the following paragraphs:

                     (a)  the consolidated gross operating income for the financial year of the corporation and the entities it controls (if any) is equal to or more than the amount prescribed under paragraph (1)(a);

                     (b)  the value of the consolidated gross assets at the end of the financial year of the corporation and the entities it controls (if any) is equal to or more than the amount prescribed under paragraph (1)(b);

                     (c)  the corporation and the entities it controls (if any) have, at the end of the financial year, a number of employees that is equal to or more than the number prescribed under paragraph (1)(c).

Large corporations

             (3)  An Aboriginal and Torres Strait Islander corporation is a large corporation for a financial year if it satisfies at least 2 of the following paragraphs:

                     (a)  the consolidated gross operating income for the financial year of the corporation and the entities it controls (if any) is equal to or more than the amount prescribed for the purposes of this paragraph;

                     (b)  the value of the consolidated gross assets at the end of the financial year of the corporation and the entities it controls (if any) is equal to or more than the amount prescribed for the purposes of this paragraph;

                     (c)  the corporation and the entities it controls (if any) have, at the end of the financial year, a number of employees that is equal to or more than the number of employees prescribed for the purposes of this paragraph.

Native Title

             (4)  The native title rights and interests held by a registered native title body corporate are to be disregarded in determining the value of the assets of a registered native title body corporate.

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

                   In deciding, for the purposes of section 37-10, whether an Aboriginal and Torres Strait Islander corporation controls an entity, apply the accounting standards made for the purposes of paragraph 295(2)(b) of the Corporations Act.

37-20   Counting employees

             (1)  The regulations may prescribe one or more methods for calculating the number of employees of Aboriginal and Torres Strait Islander corporations.

             (2)  Without limiting subsection (1), regulations made under that subsection may specify:

                     (a)  that employees of a class are to be disregarded for the purposes of section 37-10; or

                     (b)  that employees of a class are to be taken into account by treating each employee as representing a specified fraction of an employee.

37-25   Accounting standards

                   In consolidating under section 37-10:

                     (a)  the consolidated gross operating income; and

                     (b)  the value of consolidated gross assets;

apply the accounting standards in force at the relevant time (even if the standards do not otherwise apply to the financial year of some or all of the bodies concerned).