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Schedule 1—Amendments

Schedule 1 Amendments

Part 1 Classification of Aboriginal and Torres Strait Islander corporations

Corporations (Aboriginal and Torres Strait Islander) Act 2006

1  Section 37-10

Repeal the section, substitute:

37-10   Small, medium and large corporations

             (1)  An Aboriginal and Torres Strait Islander corporation is a small corporation for a financial year if the consolidated revenue for the financial year of the corporation and the entities it controls (if any) is less than the amount prescribed by the regulations for the purposes of this subsection.

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

             (2)  An Aboriginal and Torres Strait Islander corporation is a medium corporation for a financial year if:

                     (a)  it is not a small corporation for the financial year; and

                     (b)  the consolidated revenue for the financial year of the corporation and the entities it controls (if any) is less than the amount prescribed by the regulations for the purposes of this paragraph.

             (3)  An Aboriginal and Torres Strait Islander corporation is a large corporation for a financial year if it is neither a small corporation nor a medium corporation for the financial year.

2  Sections 37-20 and 37-25

Repeal the sections, substitute:

37-25   Accounting standards

                   In working out revenue for the purposes of section 37-10, 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).

3  Section 700-1

Insert:

large corporation has the meaning given by subsection 37-10(3).

medium corporation has the meaning given by subsection 37-10(2).

small corporation has the meaning given by subsection 37-10(1).

4  Application—registered size of corporations

(1)       If the Registrar decides, after this Part commences, to grant an application for registration of an Aboriginal and Torres Strait Islander corporation that was made before this Part commences, the Registrar must register the corporation under section 37-1 of the Corporations (Aboriginal and Torres Strait Islander) Act 2006 as a small, medium or large corporation within the meaning of that Act as amended by this Part.

(2)       In deciding, at any time in the financial year beginning on 1 July 2019, whether to alter the registration of an Aboriginal and Torres Strait Islander corporation under section 37-5 of the Corporations (Aboriginal and Torres Strait Islander) Act 2006 , the Registrar must have regard to whether, for the financial year beginning on 1 July 2018, the corporation was in fact a small, medium or large corporation within the meaning of that Act as amended by this Part.

Part 2 Constitutions

Corporations (Aboriginal and Torres Strait Islander) Act 2006

5  Section 21-5 (note)

Omit “the internal governance rules requirement (see section 29-20)”, substitute “subsection 29-20(2)”.

6  Subsections 22-5(1) and 23-5(1) (note)

Omit “the internal governance rules requirement (see section 29-20)”, substitute “subsection 29-20(2)”.

7  After paragraph 26-1(2)(c)

Insert:

                    (ca)  the Registrar is satisfied that the constitution lodged under subsection 29-20(2) is fit for the purposes of the corporation; and

8  Subsection 29-15(1)

Omit “(1)”.

9  Paragraph 29-15(1)(c)

Repeal the paragraph.

10  Subsection 29-15(2)

Repeal the subsection.

11  Subsection 29-17(1)

Omit “(1)”.

12  Subparagraph 29-17(1)(a)(iii)

Repeal the subparagraph.

13  Subsection 29-17(2)

Repeal the subsection.

14  Subsection 29-19(1)

Omit “(1)”.

15  Paragraph 29-19(1)(c)

Repeal the paragraph.

16  Subsection 29-19(2)

Repeal the subsection.

17  Subsection 29-20(1)

Repeal the subsection, substitute:

             (1)  An Aboriginal and Torres Strait Islander corporation meets the internal governance rules requirement if:

                     (a)  the corporation’s constitution is a model constitution for the class of corporation to which the corporation belongs; or

                     (b)  the corporation’s constitution complies with the requirements set out in section 66-1.

18  After section 29-20

Insert:

29-21   Model constitutions

             (1)  The Registrar may, by written instrument, make model constitutions.

             (2)  The Registrar may make different model constitutions for different classes of Aboriginal and Torres Strait Islander corporations.

             (3)  Before making a model constitution publicly available, the Registrar must be satisfied that the model constitution complies with the requirements set out in section 66-1.

             (4)  However, despite subsection 66-1(3), a model constitution for a class of corporation is not required to include provisions that modify or replace a particular replaceable rule if the Registrar is satisfied that the constitution for a corporation of that class does not need to cover the matters provided for in that replaceable rule.

             (5)  A model constitution made under this section is not a legislative instrument.

19  At the end of section 32-5

Add:

             (3)  If:

                     (a)  the Registrar did not grant the application for reasons including that the Registrar was not satisfied, under paragraph 26-1(2)(ca), that the constitution was fit for the purposes of the corporation; and

                     (b)  the applicant advises the Registrar under subparagraph (1)(d)(ii) that the constitution, as lodged under subsection 29-20(2) for the purposes of the application, is fit for the purposes of the corporation despite the Registrar’s view; and

                     (c)  the applicant complies with subsection (4);

then the constitution is, on reconsideration of the application, taken to be fit for the purposes of the corporation.

             (4)  For the purposes of paragraph (3)(c):

                     (a)  if the application being reconsidered was made under section 21-1—the applicant must lodge copies of the written consent, of at least 75% of the persons who consented to become members of the corporation, to the applicant giving the advice to the Registrar; and

                     (b)  if the application being reconsidered was made under section 22-1—the applicant must lodge:

                              (i)  a copy of a special resolution of the existing body corporate consenting to the applicant giving the advice to the Registrar; and

                             (ii)  a copy of those parts of the minutes of the meeting at which the special resolution was passed that relate to the passing of the special resolution; and

                     (c)  if the application being reconsidered was made under section 23-1—the applicant must lodge:

                              (i)  a copy of special resolutions of each amalgamating corporation within the meaning of that section consenting to the applicant giving the advice to the Registrar; and

                             (ii)  a copy of those parts of the minutes of the meetings at which the special resolutions were passed that relate to the passing of the special resolutions.

20  Section 57-1

Repeal the section, substitute:

57-1   What this Part is about

There are 3 kinds of rules dealing with the internal governance of an Aboriginal and Torres Strait Islander corporation:

       (a)     common law rules; and

      (b)     rules in this Act that, on their own, have effect in relation to the corporation—these are the rules other than replaceable rules; and

       (c)     rules in the corporation’s constitution—these include rules that modify or replace the replaceable rules and any other rules dealing with internal governance.

As well as explaining what replaceable rules are, this Part deals with the rules in the corporation’s constitution described in paragraph (c) and refers to them as the internal governance rules.

If the corporation’s constitution is not a model constitution, the internal governance rules must comply with section 66-1.

This Part also deals with the procedure for changing a corporation’s constitution and other matters in relation to constitutions.

21  Division 60 (heading)

Omit “ and when do they apply to a corporation ”.

22  Sections 60-1 and 60-5

Repeal the sections, substitute:

60-1   Replaceable rules and their effect

             (1)  A section or subsection whose heading contains the words “replaceable rule—see section 60-1” is a replaceable rule.

Note:          A corporation’s constitution must modify or replace the replaceable rules (see subsection 66-1(3)).

             (2)  A replaceable rule does not, on its own, have any effect, and a failure to comply with a replaceable rule is not a contravention of this Act (so the provisions about criminal liability, civil liability and injunctions do not apply).

             (3)  However, at any time while the constitution of an Aboriginal and Torres Strait Islander corporation:

                     (a)  is not a model constitution for the class of corporation to which the corporation belongs; and

                     (b)  does not modify or replace a replaceable rule (other than a conditional replaceable rule if the condition does not apply to the corporation);

that replaceable rule is taken to be included in the corporation’s constitution.

23  Section 60-10 (heading)

Omit “ and replaceable rules ”.

24  Subsection 60-10(1)

Omit “, and any replaceable rules that apply to the corporation, have”, substitute “(including any replaceable rule taken to be included in the constitution under subsection 60-1(3)) has”.

25  Subsection 60-10(2)

Omit “and rules”.

26  Section 60-15

Repeal the section.

27  Paragraphs 63-1(a) and (b)

Repeal the paragraphs, substitute:

                     (a)  the rules in the corporation’s constitution that modify or replace the replaceable rules;

                     (b)  any replaceable rule taken to be included in the constitution under subsection 60-1(3);

28  Division 66 (heading)

Repeal the heading, substitute:

Division 66 Meeting the internal governance rules requirement

29  Subsection 66-1(1)

Repeal the subsection, substitute:

             (1)  For the purposes of paragraph 29-20(1)(b) (internal governance rules requirement), the requirements that a corporation’s constitution must comply with are set out in the following subsections.

30  Subsection 66-1(3)

Repeal the subsection, substitute:

             (3)  The corporation’s constitution must include provisions that modify or replace each of the replaceable rules (other than a conditional replaceable rule, if the condition does not apply to the corporation).

Note 1:       See section 66-5 for modify and replace .

Note 2:       See section 66-10 for conditional replaceable rules .

       (3AA)  The corporation’s constitution must cover any other matters that this Act specifies must be covered in the corporation’s constitution.

31  Subsection 66-1(4)

Repeal the subsection.

32  Subsection 66-1(6) (note 2)

Omit “the corporation’s internal governance rules, after the change, would not comply with the internal governance rules requirements, the Registrar may”, substitute “, with the change, the corporation would not meet the internal governance rules requirement, the Registrar must”.

33  Section 66-5

Repeal the section, substitute:

66-5   Modifying or replacing replaceable rules

             (1)  A provision of an Aboriginal and Torres Strait Islander corporation’s constitution modifies a replaceable rule if the provision covers the matters provided for in the replaceable rule differently from the replaceable rule.

             (2)  A provision of an Aboriginal and Torres Strait Islander corporation’s constitution replaces a replaceable rule if the provision reproduces the replaceable rule or otherwise covers the matters provided for in the replaceable rule in the same way as the replaceable rule.

             (3)  The regulations may modify this section.

             (4)  Without limiting subsection (3), the regulations may provide for further situations in which the internal governance rules of an Aboriginal and Torres Strait Islander corporation modify or replace a replaceable rule.

66-10   Conditional replaceable rules

                   The table sets out the conditional replaceable rules and the condition for each such rule.

 

Conditional replaceable rules

Item

Conditional replaceable rule

Condition

1

subsection 158-5(2)

the corporation’s constitution provides for the corporation to have observers

2

subsection 201-25(2)

the corporation’s constitution provides for joint members

3

subsection 246-25(1A)

the corporation’s constitution provides for directors to appoint either or both of the following kinds of persons as a director:

(a) an individual who is not a member of the corporation;

(b) an individual who is not an Aboriginal and Torres Strait Islander person

66-15   Constitutions may provide for other matters

                   To avoid doubt, nothing in this Part prevents the constitution of an Aboriginal and Torres Strait Islander corporation from providing for a matter in addition to the matters provided for in the replaceable rules.

34  Subsection 69-30(2)

Repeal the subsection, substitute:

Corporation must meet internal governance rules requirement and be fit for purpose with the constitutional change

             (2)  The Registrar must not register the change unless the Registrar is satisfied that, with the constitutional change:

                     (a)  the corporation would meet the internal governance rules requirement; and

                     (b)  the constitution would be fit for the purposes of the corporation.

          (2A)  If:

                     (a)  the Registrar previously refused to register the change for reasons including that the Registrar was not satisfied, under paragraph (2)(b), that the constitution with the change would be fit for the purposes of the corporation; and

                     (b)  the applicant lodges the change again under section 69-20, together with:

                              (i)  a copy of a special resolution passed by the corporation to the effect that the constitution is fit for the purposes of the corporation despite the Registrar’s view; and

                             (ii)  a copy of those parts of the minutes of the meeting at which the special resolution was passed that relate to the passing of the special resolution;

then the constitution with the change is, for the purposes of paragraph (2)(b), taken to be fit for the purposes of the corporation.

35  Subsection 69-35(2)

Omit “rules requirements”, substitute “rules requirement”.

36  Subsection 69-35(2) (note)

Repeal the note, substitute:

Note:          A corporation meets the internal governance rules requirement if its constitution is a model constitution or complies with the requirements in section 66-1 (see subsection 29-20(1)).

37  Subsection 69-35(4)

Omit “requirements”, substitute “requirement”.

38  At the end of section 69-40

Add:

Note:          A change made under section 246-26 (3 year terms of appointment for directors of small corporations) takes effect in accordance with subsection 246-26(2).

39  Paragraph 72-5(7)(b)

Omit “that apply to the corporation”, substitute “taken to be included in the constitution under subsection 60-1(3)”.

40  Subsection 104-5(1) (heading)

Omit “ and replaceable rules ”.

41  Subsection 104-5(1)

Omit “and any provisions of this Act that apply to the corporation as replaceable rules, have”, substitute “(including any replaceable rule taken to be included in the constitution under subsection 60-1(3)) has”.

42  Subsection 150-15(1) (note)

Repeal the note, substitute:

Note:          As a replaceable rule, section 150-20 has no effect on its own but generally must be modified or replaced by an Aboriginal and Torres Strait Islander corporation’s constitution (see subsection 66-1(3)).

43  Section 193-1

Omit “may be modified or replaced by the corporation’s constitution. Others cannot be”, substitute “are replaceable rules, which generally must be modified or replaced by the corporation’s constitution”.

44  Section 198-1

Omit “may be modified or replaced by the corporation’s constitution. Others cannot be”, substitute “are replaceable rules, which generally must be modified or replaced by the corporation’s constitution”.

45  Section 209-1

Omit “may be modified or replaced by an Aboriginal and Torres Strait Islander corporation’s constitution. Others cannot be”, substitute “are replaceable rules, which generally must be modified or replaced by a corporation’s constitution”.

46  Section 220-1

Omit “may be modified or replaced by the corporation’s constitution”, substitute “are replaceable rules”.

47  Section 617-1 (table item 8, column headed “Decision”)

Omit “requirements”, substitute “requirement”.

48  Section 700-1

Insert:

conditional replaceable rule has the meaning given by section 66-10.

49  Section 700-1 (definition of cover the matters provided for in the replaceable rules )

Repeal the definition.

50  Section 700-1

Insert:

internal governance rules requirement has the meaning given by subsection 29-20(1).

51  Section 700-1 (definition of internal governance rules requirements )

Repeal the definition.

52  Section 700-1

Insert:

model constitution means a constitution made by the Registrar under section 29-21.

modify , in relation to a replaceable rule, has the meaning given by section 66-5.

replace , in relation to a replaceable rule, has the meaning given by section 66-5.

53  Application—constitutions

(1)       If, immediately before this Part commences, a corporation was a registered Aboriginal and Torres Strait Islander corporation, the amendments of the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (the Act ) made by this Part do not apply in relation to the corporation until the second anniversary of the day this Part commences.

(2)       Despite subitem (1), the amendment of section 69-30 of the Act made by this Part applies in relation to a constitutional change lodged after this Part commences.

(3)       However, the reference in paragraph 69-30(2)(a) to the internal governance rules requirement is taken to be a reference to the requirements set out in section 66-1 as in force immediately before this Part commences, if:

                     (a)  the corporation that lodges the constitutional change was a registered Aboriginal and Torres Strait Islander corporation immediately before this Part commences; and

                     (b)  the change is lodged before the second anniversary of the day this Part commences.

Part 3 Review of financial reports

Corporations (Aboriginal and Torres Strait Islander) Act 2006

54  Paragraphs 201-170(1)(a) and (d)

After “the audit”, insert “or review”.

55  Subsection 327-1(3)

After “audited”, insert “or reviewed”.

56  Paragraph 327-1(3)(a)

After “audit”, insert “or review”.

57  Subsection 333-15(2) (heading)

Repeal the heading, substitute:

Audit or review of financial report

58  Subsection 333-15(2)

Omit “regulations made for the purposes of subsection (1) of this section”, substitute “the regulations”.

59  Paragraph 333-15(2)(a)

After “audited”, insert “or reviewed”.

60  After paragraph 333-15(2)(a)

Insert:

                    (aa)  prescribe circumstances in which a financial report, or a part of it, may be reviewed instead of audited;

61  Paragraphs 333-15(2)(c) and (d)

After “the audit”, insert “or review”.

62  Subsection 333-15(2) (note)

After “audit”, insert “or review”.

63  Section 333-20 (heading)

After “ if audit ”, insert “ or review ”.

64  Paragraph 333-20(b)

After “audited”, insert “or reviewed”.

65  Paragraph 336-1(7)(a)

After “audited”, insert “or reviewed”.

66  Paragraphs 336-1(7)(c) and (d)

After “the audit”, insert “or review”.

67  Paragraph 336-5(7)(a)

After “audited”, insert “or reviewed”.

68  Paragraphs 336-5(7)(c) and (d)

After “the audit”, insert “or review”.

69  Division 339 (heading)

After “ Audit ”, add “ or review ”.

70  Section 339-1

After “financial report for a financial year audited”, insert “or reviewed”.

71  Section 339-1

After “the conduct of the audit”, insert “or review”.

72  Section 339-1

After “are auditing”, insert “or reviewing”.

73  Paragraph 339-5(1)(a)

After “an audit”, insert “or review”.

74  Paragraph 339-5(1)(b)

After “to be audited”, insert “or reviewed”.

75  Subsection 339-5(2)

After “to be audited”, insert “or reviewed”.

76  Section 339-15 (heading)

After “ audit ”, insert “ or review ”.

77  Section 339-15

After “audit” (wherever occurring), insert “or review”.

78  Subsection 339-20(1)

After “conducts an audit”, insert “or review”.

79  Subsection 339-20(1)

After “for the audit”, insert “or review”.

80  Subsection 339-20(1)

After “of the audit”, insert “or review”.

81  Subsection 339-20(2)

After “conducts an audit”, insert “or review”.

82  Subsection 339-20(2)

After “for the audit”, insert “or review”.

83  Subsection 339-20(2)

After “of the audit”, insert “or review”.

84  Section 339-25

After “conducts an audit”, insert “or review”.

85  Paragraphs 339-25(a) and (b)

After “the audit”, insert “or review”.

86  Subparagraph 339-25(b)(iii)

After “audits”, insert “or reviews”.

87  Paragraph 339-25(c)

After “the audit” (wherever occurring), insert “or review”.

88  At the end of Subdivision 339-A of Division 339

Add:

339-27   Exception from registration requirements—reviewing financial reports

             (1)  This section applies if an Aboriginal and Torres Strait Islander corporation has a financial report reviewed:

                     (a)  in circumstances prescribed by regulations made for the purposes of paragraph 333-15(2)(aa); or

                     (b)  as required by a determination made by the Registrar under section 336-1 or 336-5.

             (2)  An individual is taken to be a registered company auditor for the purposes of the review if the individual:

                     (a)  is a member of a professional accounting body; and

                     (b)  has a designation, in respect of that membership, prescribed by the regulations for the purposes of this paragraph.

             (3)  The provisions of this Act apply, with the necessary modifications, in relation to the individual accordingly.

89  Subdivision 339-B of Division 339 (at the end of the heading)

Add “ or review ”.

90  Section 339-30 (at the end of the heading)

Add “ in relation to audit ”.

91  Section 339-30

Omit “The auditor of a financial report”, substitute “In the case of an audit of a financial report, the auditor”.

92  After section 339-30

Insert:

339-33   Auditor to form conclusion in relation to review

                   In the case of a review of a financial report, the auditor must form a conclusion about:

                     (a)  whether, on the basis of the review, anything has come to the auditor’s attention that causes the auditor to believe that the financial report does not satisfy the requirements of any of the following:

                              (i)  this Act;

                             (ii)  any applicable regulations made for the purposes of section 333-10 or 333-15;

                            (iii)  any applicable determinations made by the Registrar under section 336-1 or 336-5; and

                     (b)  whether the auditor has been given all information, explanation and assistance necessary for the conduct of the review; and

                     (c)  whether the corporation has kept financial records sufficient to enable the financial report to be prepared and reviewed; and

                     (d)  whether the corporation has kept other records and registers as required by this Act; and

                     (e)  any other matter specified in the regulations.

93  Section 339-35

After “the audit” (wherever occurring), insert “or review”.

94  Section 339-40 (at the end of the heading)

Add “ for audit ”.

95  Before subsection 339-40(1)

Insert:

          (1A)  This section applies in relation to a financial report that is required to be audited, unless section 339-43 applies in relation to the report.

96  Subsection 339-40(1)

Omit “a financial”, substitute “the financial”.

97  After section 339-40

Insert:

339-43   Auditor’s report for review

             (1)  This section applies in relation to a financial report that is reviewed:

                     (a)  in circumstances prescribed by regulations made for the purposes of paragraph 333-15(2)(aa); or

                     (b)  as required by a determination made by the Registrar under section 336-1 or 336-5.

             (2)  The auditor of the financial report must prepare a report for the corporation’s members on whether the auditor has concluded that, on the basis of the review, anything has come to the auditor’s attention that causes the auditor to believe that the financial report does not satisfy the requirements of any of the following:

                     (a)  this Act;

                     (b)  any applicable regulations made for the purposes of sections 333-10 and 333-15;

                     (c)  any applicable determinations made by the Registrar under section 336-1 or 336-5.

If the auditor has concluded that anything has come to the auditor’s attention that causes the auditor to so believe, the auditor’s report must say why.

Penalty:  50 penalty units.

             (3)  If:

                     (a)  the financial report is required to comply with the accounting standards; and

                     (b)  the auditor believes that the financial report does not comply with an accounting standard;

the auditor’s report must, to the extent it is practicable to do so, quantify the effect that non-compliance has on the financial report. If it is not practicable to quantify the effect fully, the report must say why.

Penalty:  50 penalty units.

             (4)  The auditor’s report must describe:

                     (a)  any defect or irregularity in the financial report; and

                     (b)  any deficiency, failure or shortcoming in respect of the matters referred to in paragraph 339-33(b), (c) or (d).

Penalty:  50 penalty units.

             (5)  If the review of the financial report is required to be conducted in accordance with some or all of the auditing standards, the auditor’s report must include any statements or disclosures required by those auditing standards.

Penalty:  50 penalty units.

             (6)  The auditor’s report must contain any other information required by the regulations.

             (7)  The report must specify the date on which it is made.

Penalty:  50 penalty units.

             (8)  An offence against subsection (2), (4), (5) or (7) is an offence of strict liability.

98  Section 339-45

Omit “The auditor’s report”, substitute “An auditor’s report under section 339-40 or 339-43”.

99  Paragraphs 339-50(1)(a) and (b)

After “the audit”, insert “or review”.

100  Subparagraphs 339-50(2)(a)(i) and (ii) and (b)(i) and (ii)

After “the audit”, insert “or review”.

101  Subsection 339-50(4)

After “for the audit”, insert “or review”.

102  Subparagraphs 339-50(4)(a)(i) and (ii) and (b)(i) and (ii)

After “the audit”, insert “or review”.

103  Paragraph 339-50(6)(a)

Omit “audit”, substitute “auditor’s”.

104  Subsection 339-55(1)

Omit “the audit”, substitute “an audit or review”.

105  Subparagraphs 339-55(2)(b)(i) and (4)(b)(i)

Omit “audit report prepared in relation to the audit”, substitute “auditor’s report prepared in relation to the audit or review”.

106  Subparagraphs 339-55(9)(a)(ii) and (c)(i)

After “the audit”, insert “or review”.

107  At the end of section 339-55

Add:

Audit working papers includes working papers for review

           (11)  A reference in this section to audit working papers includes, in relation to a review, working papers for the review.

108  Paragraphs 339-60(1)(a) and (2)(a) and (b), 339-65(1)(a) and (2)(a) and 339-70(1)(a), (2)(a) and (3)(a)

After “audit”, insert “or review”.

109  Subsections 339-75(1) and (2) and 339-80(1), (2) and (3)

After “the audit” (wherever occurring), insert “or review”.

110  At the end of paragraph 339-85(b)

Add “or review”.

111  Subparagraphs 339-90(1)(a)(ii) and (iii)

After “audit” (wherever occurring), insert “or review”.

112  Paragraph 339-90(2)(a)

After “for the audit”, insert “or review”.

113  Subparagraphs 339-90(2)(a)(ii) and (iii)

After “audit” (wherever occurring), insert “or review”.

114  Paragraph 339-90(3)(a)

After “audit”, insert “or review”.

115  Subparagraphs 339-90(3)(b)(ii) and (iii)

After “audit” (wherever occurring), insert “or review”.

116  Subsection 339-90(6)

Repeal the subsection, substitute:

Person involved in conduct of an audit or review

             (6)  A person is involved in the conduct of the audit or review if the person is any of the following:

                     (a)  the auditor;

                     (b)  the lead auditor for the audit or review;

                     (c)  the review auditor for the audit or review;

                     (d)  a professional member of the audit team for the audit or review;

                     (e)  any other person involved in the conduct of the audit or review.

117  Subsection 342-5(2)

After “audited”, insert “or reviewed”.

118  Paragraphs 342-5(3A)(c) and (3C)(b)

After “audited”, insert “or reviewed”.

119  Subsection 345-5(1)

After “audits”, insert “or reviews”.

120  Paragraph 345-5(1)(b)

After “audit”, insert “or review”.

121  At the end of subsection 345-5(2)

Add “or reviewed”.

122  Section 345-15

Omit “or audit”, substitute “, audit or review”.

123  Section 345-15

Omit “or audited”, substitute “, audited or reviewed”.

124  Subparagraphs 466-1(1)(b)(ii) and 472-1(1)(c)(i) and (d)(i)

After “conducting an audit”, insert “or review”.

125  Section 700-1 (paragraph (r) of the definition of affairs )

After “the audit”, insert “or review”.

126  Section 700-1

Insert:

auditor of an Aboriginal and Torres Strait Islander corporation includes an auditor that conducts a review of a report of the corporation.

127  Section 700-1

Insert:

involved in the conduct of the audit or review has the meaning given by subsection 339-90(6).

128  Section 700-1 (definition of person involved in the conduct of an audit )

Repeal the definition.

Part 4 Subsidiaries and other entities

Corporations (Aboriginal and Torres Strait Islander) Act 2006

129  After paragraph 21-1(1)(c)

Insert:

                    (ca)  if the applicant intends that paragraph 77-5(1)(b) or (c) will apply to the corporation—an indication of whether the corporation is intended to be a wholly-owned subsidiary or another kind of eligible body corporate;

130  After paragraph 22-1(2)(g)

Insert:

                    (ga)  if the applicant intends that paragraph 77-5(1)(b) or (c) will apply to the corporation—an indication of whether the corporation is intended to be a wholly-owned subsidiary or another kind of eligible body corporate;

131  After paragraph 23-1(2)(d)

Insert:

                   (da)  if the applicant intends that paragraph 77-5(1)(b) or (c) will apply to the amalgamated corporation—an indication of whether the corporation is intended to be a wholly-owned subsidiary or another kind of eligible body corporate;

132  Subsection 77-5(1)

Repeal the subsection, substitute:

Minimum number of members

             (1)  An Aboriginal and Torres Strait Islander corporation must have at least the following number of members:

                     (a)  unless paragraph (b) or (c) applies to the corporation:

                              (i)  5 members; or

                             (ii)  the lesser number of members determined under subsection (2), (3) or (4);

                     (b)  if the corporation is a wholly-owned subsidiary of an Aboriginal and Torres Strait Islander corporation—one member;

                     (c)  if the corporation is an eligible body corporate other than a wholly-owned subsidiary—2 members.

133  After paragraph 77-5(2)(a)

Insert:

                    (aa)  neither paragraph (1)(b) nor (c) will apply to the corporation; and

134  After paragraph 77-5(3)(b)

Insert:

           ; and (ba)  neither paragraph (1)(b) nor (c) applies to the corporation;

135  After paragraph 77-5(4)(b)

Insert:

           ; and (ba)  neither paragraph (1)(b) nor (c) applies to the corporation;

136  At the end of section 201-115

Add:

Note 3:       Different rules apply for an Aboriginal and Torres Strait Islander corporation that has 2 members, only one of which is an Aboriginal and Torres Strait Islander person (see section 201-117).

137  After section 201-115

Insert:

201-117   How many votes a member has—2-member eligible bodies corporate

             (1)  At a general meeting of an Aboriginal and Torres Strait Islander corporation that has 2 members, only one of which is an Aboriginal and Torres Strait Islander person, the member that is an Aboriginal and Torres Strait Islander person must have a casting vote.

             (2)  A provision of the corporation’s constitution has no effect to the extent that it is inconsistent with subsection (1).

138  After subsection 246-5(1)

Insert:

          (1A)  The requirement in subsection (1) is met, in relation to an Aboriginal and Torres Strait Islander corporation that has 2 directors, if:

                     (a)  both directors are Aboriginal and Torres Strait Islander persons; or

                     (b)  if only one of the directors is an Aboriginal and Torres Strait Islander person—that director has a casting vote.

139  Subsection 246-5(3)

Repeal the subsection, substitute:

             (3)  Either:

                     (a)  a majority of the directors of the corporation must be members of the corporation; or

                     (b)  the corporation must be an eligible body corporate.

140  Section 700-1

Insert:

eligible body corporate means:

                     (a)  a wholly-owned subsidiary of an Aboriginal and Torres Strait Islander corporation; or

                     (b)  a corporation whose only members are bodies corporate.

Note:          To be registered as an Aboriginal and Torres Strait Islander corporation, an eligible body corporate must meet the Indigeneity requirement in section 29-5 by having the required number or percentage of members who are Aboriginal and Torres Strait Islander persons.

141  Application—section 201-117

If, immediately before this Part commences, a corporation:

                     (a)  was a registered Aboriginal and Torres Strait Islander corporation; and

                     (b)  had 2 members, only one of which is an Aboriginal and Torres Strait Islander person;

section 201-117 of the Corporations (Aboriginal and Torres Strait Islander) Act 2006 , as inserted by this Part, does not apply in relation to the corporation for so long as the corporation continues to have only 2 members, only one of which is an Aboriginal and Torres Strait Islander person.

Part 5 Meeting and reporting obligations

Corporations (Aboriginal and Torres Strait Islander) Act 2006

142  At the end of subsection 37-5(5)

Add “, and if the alteration means that a special resolution under subsection 201-175(1) (resolution by small corporation not to hold upcoming AGMs) ceases to have effect, the notice must indicate this”.

143  Section 57-5 (after table item 50)

Insert:

 

50A

Automatic extension of time for holding AGM

section 201-153

144  Section 57-5 (at the end of the cell at table item 51, column headed “Subject of provision”)

Add “on application to the Registrar”.

145  Section 57-5 (after table item 54)

Insert:

 

54A

Resolution by small corporation not to hold upcoming AGMs

section 201-175

146  Subsection 69-5(1)

After “change its constitution”, insert “(other than under section 246-26)”.

147  After subsection 69-5(1)

Insert:

          (1A)  An Aboriginal and Torres Strait Islander corporation that is registered as a small corporation may change its constitution in accordance with section 246-26 (3 year terms of appointment for directors of small corporations).

Note:          The constitutional change takes effect immediately (see subsection 246-26(2)).

148  Subsection 69-20(3) (note)

Repeal the note, substitute:

Note:          A secretary of an Aboriginal and Torres Strait Islander corporation may be liable for a civil penalty for a contravention of subsection (1) or (2). See sections 265-40 and 386-10.

149  Subsection 69-20(5) (note)

Repeal the note.

150  At the end of section 69-20

Add:

             (6)  This section does not apply in relation to a constitutional change under section 246-26 (3 year terms of appointment for directors of small corporations).

151  Section 198-1

After “An Aboriginal and Torres Strait Islander corporation is”, insert “generally”.

152  At the end of section 201-150

Add:

             (5)  Subsection (1) does not apply in relation to an AGM if:

                     (a)  the 5 month period mentioned in that subsection is extended under subsection 201-153(1) for the AGM (see subsection 201-153(2) instead); or

                     (b)  the corporation has been granted an extension for the AGM under subsection 201-155(2) (see subsection 201-155(3) instead); or

                     (c)  at the end of the 5 month period mentioned in that subsection, the AGM is covered by a special resolution in effect under section 201-175; or

                     (d)  the AGM is required to be held within a different period specified in a direction given by the Registrar under section 201-190.

Note:          A defendant bears an evidential burden in relation to the matters in this subsection (see subsection 13.3(3) of the Criminal Code ).

153  After section 201-150

Insert:

201-153   Automatic extension of time for holding AGM

             (1)  If an Aboriginal and Torres Strait Islander corporation makes a statement to the Registrar under section 348-10 (grounds for automatic extension) in relation to its AGM and reports for a financial year, the 5 month period specified in subsection 201-150(1) for the AGM is extended by 30 days.

Note:          The statement also extends the time for lodgment of reports (see sections 330-15 and 348-3).

             (2)  The corporation must hold the AGM within the extended period.

Penalty:  10 penalty units.

             (3)  An offence against subsection (2) is an offence of strict liability.

             (4)  The period for holding the AGM is extended only once in relation to the corporation’s AGM and reports for a financial year (regardless of how many statements are made under section 348-10 and how many grounds for making statements apply in relation to the financial year).

154  Section 201-155 (at the end of the heading)

Add “ on application to Registrar ”.

155  Subsection 201-155(1)

After “section 201-150”, insert “or 201-153”.

156  At the end of Division 201

Add:

Subdivision 201-H Resolution by small corporation not to hold upcoming AGMs

201-175   Resolution by small corporation not to hold upcoming AGMs

             (1)  An Aboriginal and Torres Strait Islander corporation that is registered as a small corporation may, at an AGM, pass a special resolution not to hold the next AGM, or the next 2 AGMs.

             (2)  The corporation may only pass the special resolution if, at the AGM at which the special resolution is proposed, each of the directors (other than any director appointed under section 246-17 or a provision of the corporation’s constitution that modifies or replaces that section) is appointed for a term of:

                     (a)  if the special resolution is not to hold the next 2 AGMs—3 years; or

                     (b)  otherwise—at least 2 years.

Note:          See also section 246-26.

             (3)  The special resolution cannot be passed by circulating resolution (despite subsection 204-1(6)).

             (4)  The directors of the corporation must not vote on the special resolution if there are members of the corporation who are not directors.

             (5)  However, subsection (4) does not apply if the Registrar, by written notice given to the corporation before the special resolution is passed, exempts the directors from the subsection.

             (6)  A notice under subsection (5) is not a legislative instrument.

             (7)  The special resolution takes effect when a copy is lodged with the Registrar within the time required under section 201-180.

             (8)  The special resolution ceases to have effect if:

                     (a)  the Registrar alters the registered size of the corporation under section 37-5; or

                     (b)  the Registrar directs the corporation to hold an AGM under section 201-190; or

                     (c)  the Registrar determines under section 487-1 that the corporation is to be under special administration.

201-180   Lodgment of copy of resolution etc. with Registrar

                   An Aboriginal and Torres Strait Islander corporation must, within 28 days after a special resolution is passed under section 201-175, lodge with the Registrar:

                     (a)  a copy of the notice of the meeting at which the special resolution was passed; and

                     (b)  a copy of the special resolution; and

                     (c)  a copy of those parts of the minutes of the meeting at which the special resolution was passed that relate to the passing of the special resolution; and

                     (d)  a directors’ statement (see subsection 69-20(5)).

201-185   Notice of material changes while AGMs not being held by small corporation

             (1)  If:

                     (a)  a material change occurs in relation to the affairs of an Aboriginal and Torres Strait Islander corporation; and

                     (b)  at the time the change occurs, an AGM that the corporation would otherwise be required to hold will not be held because of a special resolution in effect under section 201-175;

the corporation must lodge written notice of the change with the Registrar, no later than 28 days after the change occurs.

Penalty:  5 penalty units.

             (2)  Subsection (1) is an offence of strict liability.

201-190   Direction by Registrar to hold AGM despite resolution

             (1)  The Registrar may direct an Aboriginal and Torres Strait Islander corporation to hold an AGM that the corporation would otherwise not hold because of a special resolution in effect under section 201-175, if the Registrar is satisfied that, in the circumstances of the corporation, there is a need for an AGM.

Note:          If the Registrar gives a direction under this section, the special resolution ceases to have effect (see subsection 201-175(8)).

             (2)  The direction must:

                     (a)  be given by notice in writing to the corporation; and

                     (b)  specify the period within which the AGM must be held.

157  At the end of subsection 204-1(6)

Add:

Note:          There is an exception to this subsection in subsection 201-175(3).

158  Subsection 246-25(2)

Omit “subsection (4)”, substitute “subsections (2A) and (4)”.

159  After subsection 246-25(2)

Insert:

          (2A)  A director of an Aboriginal and Torres Strait Islander corporation may be appointed for a period exceeding 2 years (but not exceeding the maximum period specified in the corporation’s constitution), if:

                     (a)  the constitution has been changed in accordance with section 246-26 (3 year terms of appointment for directors of small corporations); and

                     (b)  the appointment is made by resolution passed at an AGM at which a special resolution under section 201-175 (resolution not to hold upcoming AGMs) is proposed.

160  After section 246-25

Insert:

246-26  3 year terms of appointment for directors of small corporations

             (1)  If, at an AGM held by an Aboriginal and Torres Strait Islander corporation that is registered as a small corporation, a special resolution under section 201-175 (resolution not to hold upcoming AGMs) is proposed, the corporation may pass a special resolution changing the corporation’s constitution to allow directors of the corporation to be appointed for a period not exceeding 3 years.

             (2)  If the corporation does so, the constitutional change takes effect immediately (despite paragraph 69-40(a)).

             (3)  However, the constitutional change ceases to have effect if:

                     (a)  the corporation does not pass the special resolution under section 201-175 at the AGM; or

                     (b)  the corporation fails to lodge a copy of the special resolution under section 201-175 within the time required by section 201-180.

             (4)  If the constitutional change ceases to have effect, any director appointed in accordance with it is taken to have been appointed for the maximum period allowed under the constitution before the change.

             (5)  The corporation must lodge the following documents together with the documents lodged under section 201-180:

                     (a)  a copy of the special resolution under this section;

                     (b)  a copy of those parts of the minutes of the meeting at which the special resolution was passed that relate to the passing of the special resolution;

                     (c)  a directors’ statement (see subsection 69-20(5));

                     (d)  a copy of the constitutional change.

Note:          The documents must be lodged within 28 days (see section 201-180).

             (6)  The Registrar must register a constitutional change lodged under subsection (5).

             (7)  The Registrar may direct the corporation to lodge a consolidated copy of the corporation’s constitution.

161  At the end of section 327-1

Add:

             (6)  The regulations may prescribe reports that are to be laid before an AGM (see section 349-1).

162  Subsection 330-10(1)

After “the Registrar”, insert “within the time for lodgment under subsection (2) (as extended under section 330-15, if applicable)”.

163  At the end of subsection 330-10(2)

Add:

Note:          The time for lodgment under this section is extended if section 330-15 applies.

164  At the end of Division 330

Add:

330-15   Automatic extension of time for lodgment of general report

             (1)  If an Aboriginal and Torres Strait Islander corporation makes a statement to the Registrar under section 348-10 (grounds for automatic extension) in relation to its AGM and reports for a financial year, the time for lodgment under subsection 330-10(2) for the general report for the financial year is extended by 30 days.

Note:          The statement under section 348-10 also extends the time for lodgment of all other reports (see section 348-3) and the period within which the AGM must be held (see section 201-153).

             (2)  The time for lodgment is extended only once in relation to the corporation’s AGM and reports for a financial year (regardless of how many statements are made under section 348-10 and how many grounds for making statements apply in relation to the financial year).

165  Subsection 348-1(1)

After “the Registrar”, insert “within the time for lodgment under subsection (3) (as extended under section 348-3, if applicable)”.

166  At the end of subsection 348-1(3)

Add:

Note:          The time for lodgment under this subsection is extended if section 348-3 applies.

167  After section 348-1

Insert:

348-3   Automatic extension of time for lodgment of reports

             (1)  If an Aboriginal and Torres Strait Islander corporation makes a statement to the Registrar under section 348-10 (grounds for automatic extension) in relation to its AGM and reports for a financial year, the time for lodgment under subsection 348-1(3) for all reports to which that subsection applies for the financial year is extended by 30 days.

Note:          The statement under section 348-10 also extends the time for lodgment of the general report (see section 330-15) and the period within which the AGM must be held (see section 201-153).

             (2)  The time for lodgment is extended only once in relation to the corporation’s AGM and reports for a financial year (regardless of how many statements are made under section 348-10 and how many grounds for making statements apply in relation to the financial year).

168  At the end of Division 348

Add:

348-10   Statement of grounds for automatic extension

             (1)  An Aboriginal and Torres Strait Islander corporation may state that the corporation considers that one or more of the grounds in subsection (2) applies to the corporation in relation to its AGM and reports for a financial year.

             (2)  A ground in this subsection applies to the corporation if the corporation’s ability to hold its AGM within a period after the end of the financial year, or lodge its reports for the financial year within the time for lodgment, is affected by any of the following:

                     (a)  a death in a community;

                     (b)  a cultural activity;

                     (c)  a natural disaster;

                     (d)  if the corporation is required to have a report audited or reviewed—an unavoidable delay in obtaining the audit or review.

Note:          The time for holding the AGM and lodging the reports is automatically extended if a statement is made (see sections 201-153, 330-15 and 348-3).

             (3)  The statement:

                     (a)  may be made orally or in writing; and

                     (b)  must be made to the Registrar; and

                     (c)  must specify the corporation and indicate who is making the statement on its behalf; and

                     (d)  must indicate when the corporation intends to hold its AGM and lodge its reports.

             (4)  If a corporation makes a statement under this section orally, the Registrar must give the corporation a written acknowledgement that the statement was made.

             (5)  If statements made under this section by an Aboriginal and Torres Strait Islander corporation have had effect in relation to its AGM and reports for 3 consecutive financial years, a statement made in relation to the fourth consecutive financial year has no effect (despite sections 201-153, 330-15 and 348-3).

169  At the end of Part 7-3

Add:

Division 349 Laying reports before AGM

349-1   Laying reports before AGM

             (1)  If an Aboriginal and Torres Strait Islander corporation is required to hold an AGM after the end of a financial year, the directors of the corporation must lay before the AGM any report in respect of the financial year that is prescribed by the regulations for the purposes of this subsection.

Penalty:  5 penalty units.

             (2)  Subsection (1) is an offence of strict liability.

             (3)  A report prescribed for the purposes of subsection (1) must be a report that an Aboriginal and Torres Strait Islander corporation is required to prepare or obtain under this Part in respect of a financial year.

170  Subsection 439-15(1)

Omit “or 201-155”, substitute “, 201-153 or 201-155, or by a direction given under section 201-190”.

Part 6 Members and membership

Corporations (Aboriginal and Torres Strait Islander) Act 2006

171  Subsections 150-25(3) and (4)

Repeal the subsections, substitute:

Manner and circumstances

             (3)  The membership may be cancelled by special resolution in general meeting, if:

                     (a)  in the 12 months before the meeting, the corporation attempted to contact the member:

                              (i)  at least twice using the address entered in the register of members for the member; and

                             (ii)  if the member nominated alternative addresses or means of contact for the purposes of subsection 201-25(3) or (4)—at least once using each of those addresses or means of contact or (if there are more than 3 of them) 3 of them; and

                            (iii)  if the member has not nominated any alternative address or means of contact for the purposes of subsection 201-25(3) or (4)—at least twice using another means (if any) that the corporation’s constitution permits; and

                     (b)  at least one of the attempts was made in the 3 months before the meeting; and

                     (c)  the corporation has been unable to contact the member in any of the attempts.

Notice

             (4)  If the corporation does so cancel the membership, the directors must, as soon as practicable after the special resolution is passed, send a copy of the special resolution:

                     (a)  to the address last entered in the register of members for the person; and

                     (b)  if the person had nominated alternative addresses or means of contact for the purposes of subsection 201-25(3) or (4)—to each of those addresses or means of contact or (if there were more than 3 of them) 3 of them.

Penalty:  5 penalty units.

172  Section 180-20 (heading)

Omit “ and inspection ”.

173  Subsection 180-20(2)

Repeal the subsection.

174  At the end of subsection 180-25(1)

Add:

Note 3:       If a determination under section 180-26 is in effect, a reference in this section to a register is taken to be a reference to a copy of the register that excludes the information specified in the determination (see section 180-27), unless the Registrar has given the corporation a direction under section 180-28.

175  After section 180-25

Insert:

180-26   Determination where someone’s personal safety is at risk

             (1)  If the directors of an Aboriginal and Torres Strait Islander corporation reasonably believe that someone’s personal safety would be put at risk if particular information about a member or former member of the corporation were allowed to be inspected (whether by a particular person or persons generally), the directors may make a written determination, specifying that information.

Note:          While a determination is in force, the specified information is generally excluded from the registers that may be publicly inspected and copied (see section 180-27).

             (2)  The directors must revoke the determination if they no longer have the reasonable belief mentioned in subsection (1).

             (3)  The corporation must lodge with the Registrar:

                     (a)  a copy of any determination made under subsection (1); and

                     (b)  a copy of any revocation of a determination;

no later than 28 days after the determination is made or revoked.

Penalty:  10 penalty units.

             (4)  Subsection (3) is an offence of strict liability.

             (5)  A determination made under subsection (1) is not a legislative instrument.

180-27   Redacted copy of register

             (1)  At any time while a determination under section 180-26 is in force in relation to a member or former member of an Aboriginal and Torres Strait Islander corporation:

                     (a)  the corporation must ensure that there exists a copy of the register of members or former members that excludes the information specified in the determination; and

                     (b)  a reference in section 180-25 to the register of members or former members is taken to be a reference to a copy of the register that excludes that information.

Note:          A person may request the Registrar to direct the corporation to make the register available despite the determination (see section 180-28).

             (2)  A copy of a register that excludes information must indicate that it is a copy made for the purposes of this section.

             (3)  The regulations may prescribe requirements that an Aboriginal and Torres Strait Islander corporation, or the directors of an Aboriginal and Torres Strait Islander corporation, must comply with in relation to copies of a register made for the purposes of this section.

180-28   Access to full register while redacted copy exists

             (1)  At any time while a determination under section 180-26 is in force in relation to a member or former member of an Aboriginal and Torres Strait Islander corporation, the Registrar may direct the corporation to allow a person to inspect, or give a person a copy of:

                     (a)  the register; or

                     (b)  a copy of the register that includes particular information specified in a determination under section 180-26.

             (2)  The Registrar may give the direction if:

                     (a)  the person requests the Registrar, in writing, to make a direction under subsection (1); and

                     (b)  the Registrar is satisfied that:

                              (i)  the person has a genuine need to inspect the register or the particular information; and

                             (ii)  no-one’s personal safety will be put at risk as a result.

             (3)  If the Registrar gives the direction, section 180-25 applies in relation to the corporation and the person as if references in that section to the register were (despite paragraph 180-27(1)(b)) references to the register, or a copy that includes the particular information, specified in the direction.

176  At the end of section 180-30

Add:

             (3)  If, at the time the AGM is held, a determination under section 180-26 is in force in relation to a member of the corporation, the reference in subsection (1) to the register of members is taken to be a reference to a copy of the register that excludes the information specified in the determination.

177  After subsection 201-25(4)

Insert:

Recording nominated addresses etc.

          (4A)  If a member nominates an address or other means for the corporation to contact the member for the purposes of subsection (3) or (4), the corporation:

                     (a)  may record the nominated information separately from the register of members; and

                     (b)  must store the nominated information in the place the corporation is required to keep its records under section 322-20.

178  After subsection 330-5(1)

Insert:

          (1A)  Despite subparagraph (1)(a)(i), the general report must not set out any information that is specified in a determination in force under section 180-26 (where someone’s personal safety is at risk).

179  Application—recording nominated addresses etc.

Subsection 201-25(4A) of the Corporations (Aboriginal and Torres Strait Islander) Act 2006 , as inserted by this Part, applies to information nominated after this Part commences.

180  Application—cancellation of membership on ground that member is not contactable

The amendments of section 150-25 of the Corporations (Aboriginal and Torres Strait Islander) Act 2006 made by this Part do not apply, in relation to the cancellation of a member’s membership by special resolution in a general meeting, if:

                     (a)  the special resolution is passed at a general meeting held less than 12 months after this Part commences; and

                     (b)  either:

                              (i)  notice of the general meeting is given before this Part commences; or

                             (ii)  the notice of the general meeting specifies that the resolution is to cancel the member’s membership in the circumstances set out in subsection 201-25(3) of that Act as in force before this Part commences.

Part 7 Key management personnel

Corporations (Aboriginal and Torres Strait Islander) Act 2006

181  Paragraph 327-1(1)(b)

Omit “or directors’ report”, substitute “directors’ report or remuneration report”.

182  Subsection 327-1(4)

After “directors’ reports”, insert “, remuneration reports”.

183  Before subsection 330-5(2)

Insert:

          (1B)  Without limiting paragraph (1)(b), the regulations may require information about the employment history of key management personnel of the corporation or an entity the corporation controls.

184  Section 333-1

After “directors’ reports”, insert “, remuneration reports”.

185  Section 333-5 (heading)

After “ directors’ reports ”, insert “ , remuneration reports ”.

186  Subsection 333-5(3)

Omit “either or both”, substitute “any or all”.

187  After paragraph 333-5(3)(b)

Insert:

                   ; (c)  a remuneration report for a financial year.

188  At the end of section 333-10

Add:

Remuneration reports

             (4)  If a section 333-5 report is a remuneration report for a financial year, regulations made for the purposes of subsection (1) may require the report to include information about the remuneration of key management personnel of the corporation or an entity that the corporation controls.

189  Subsection 333-15(3)

Omit “or a directors’ report”, substitute “, directors’ report or remuneration report”.

190  Subsection 333-15(3) (note)

Omit “or a directors’ report”, substitute “, directors’ report or remuneration report”.

191  At the end of Division 333

Add:

333-25   Key management personnel must give information to corporation

             (1)  If:

                     (a)  an Aboriginal and Torres Strait Islander corporation is required by this Act or the regulations to include information about an individual in a report prepared under this Part in respect of a period; and

                     (b)  the information is required because the individual is or was a member of the key management personnel of the corporation or an entity the corporation controls at a time in the period;

the individual must give the corporation the information before the end of the period.

Penalty:  10 penalty units.

             (2)  Subsection (1) does not apply if the individual has previously given the information to the corporation.

             (3)  Subsection (1) is an offence of strict liability.

192  Section 342-1

Omit “and a directors’ report”, substitute “, directors’ report or remuneration report”.

193  After paragraph 342-5(1)(b)

Insert:

               ; or (c)  a remuneration report for a financial year;

194  Subsection 342-5(3A) (heading)

Omit “ or auditor’s report ”, substitute “ , auditor’s report or remuneration report ”.

195  At the end of subsection 342-5(3A)

Add:

               ; or (d)  a remuneration report for a financial year.

196  At the end of paragraph 348-1(3)(a)

Add:

                            (iv)  a remuneration report for a financial year; or

197  Subsection 348-5(1)

Omit “or a directors’ report”, substitute “, directors’ report or remuneration report”.

198  Section 700-1

Insert:

key management personnel has the same meaning as in the accounting standards.

Part 8 Related party transactions

Corporations (Aboriginal and Torres Strait Islander) Act 2006

199  After section 287-1

Insert:

287-3   Small amounts given to related entity

             (1)  Member approval is not needed to give a financial benefit to a related party in a financial year if:

                     (a)  the Aboriginal and Torres Strait Islander corporation that gives the benefit, or that controls the entity that gives the benefit, is registered as a small corporation for the financial year; and

                     (b)  the total of the following amounts or values is less than or equal to the amount prescribed by the regulations for the purposes of this section:

                              (i)  the amount or value of the financial benefit;

                             (ii)  the total of all other amounts or values of financial benefits given to the related party, in the financial year, for which member approval was not needed because of this section.

             (2)  In working out the total of the amounts or values referred to in subparagraphs (1)(b)(i) and (ii):

                     (a)  add in all amounts or values of financial benefits given to the related party in the financial year by any of the following:

                              (i)  the corporation;

                             (ii)  the entity;

                            (iii)  any entity controlled by the corporation or entity; and

                     (b)  disregard:

                              (i)  amounts that have been repaid; and

                             (ii)  amounts that fall under any other exception in this Part.

For the purposes of this subsection, the time at which an entity must be controlled is the time at which the financial benefit is given.

200  After subsection 310-5(4)

Insert:

          (4A)  The Registrar must not make a determination exempting a corporation from section 284-1 (need for member approval for financial benefit) unless:

                     (a)  the determination specifies, as a condition under paragraph (4)(a), a particular financial benefit, and particular related party, to which the determination relates; and

                     (b)  the Registrar is satisfied that the giving of the particular financial benefit will not cause detriment to the corporation.

201  After subsection 310-15(3)

Insert:

          (3A)  The Registrar must not make a determination exempting a corporation from section 284-1 (need for member approval for financial benefit) unless:

                     (a)  the determination specifies, as a condition under paragraph (3)(a), a particular financial benefit, and particular related party, to which the determination relates; and

                     (b)  the Registrar is satisfied that the giving of the particular financial benefit will not cause detriment to the corporation.

202  Application—exception to requirement for member approval for related party benefit for small amount

Section 287-3 of the Corporations (Aboriginal and Torres Strait Islander) Act 2006 , as inserted by this Part, applies in relation to a financial benefit given in a financial year that ends after this Part commences.

Part 9 Special administration

Corporations (Aboriginal and Torres Strait Islander) Act 2006

203  At the end of subsection 453-1(1)

Add:

                    ; (f)  any irregularity in the management of the corporation’s financial affairs.

204  Paragraph 487-5(1)(a)

Repeal the paragraph, substitute:

                     (a)  the corporation is insolvent, or is likely to become insolvent at some future time;

Part 10 Voluntary deregistration

Corporations (Aboriginal and Torres Strait Islander) Act 2006

205  Subsection 546-1(2)

After “only if”, insert “all of the following conditions are met”.

206  Paragraph 546-1(2)(a)

Repeal the paragraph, substitute:

                     (a)  the members of the corporation, by special resolution, resolve that the corporation should be voluntarily deregistered;

207  Paragraphs 546-1(2)(b) to (e)

Omit “; and”, substitute “;”.

208  After subsection 546-1(2)

Insert:

          (2A)  Despite subsection (2), a person may apply even if one or more of the conditions mentioned in paragraphs (2)(a) to (e) are not met. The application must specify the conditions that are not met and reasons for them not being met.

209  Subsection 546-1(4)

Repeal the subsection, substitute:

Deregistration procedure

             (4)  If the Registrar is not aware of any failure to comply with subsection (1) or (3), and is also not aware of any condition mentioned in subsection (2) not being met, the Registrar must give notice of the proposed deregistration in the Gazette.

          (4A)  The Registrar may give notice of the proposed deregistration in the Gazette if:

                     (a)  the Registrar is not aware of any failure to comply with subsection (1) or (3) and is also not aware of the condition mentioned in paragraph (2)(f) not being met; and

                     (b)  the Registrar is aware of one or more of the conditions mentioned in paragraphs (2)(a) to (e) not being met and is satisfied that it is justified to proceed with the deregistration despite this.

210  Application—voluntary deregistration

The amendments of the Corporations (Aboriginal and Torres Strait Islander) Act 2006 made by this Part apply in relation to an application for deregistration made after this Part commences.

Part 11 Investigation and enforcement

Corporations (Aboriginal and Torres Strait Islander) Act 2006

211  At the end of section 439-1

Add:

The Registrar may also accept an undertaking in connection with a matter in relation to which the Registrar has a power or function (see section 439-25). The undertaking may be enforced in a Court.

212  At the end of Division 439

Add:

439-25   Enforcement of undertakings

             (1)  The Registrar may accept a written undertaking given by a person in connection with a matter in relation to which the Registrar has a function or power under this Act.

             (2)  The person may withdraw or vary the undertaking at any time, but only with the Registrar’s consent.

             (3)  If the Registrar considers that the person who gave the undertaking has breached any of its terms, the Registrar may apply to the Court for an order under subsection (4).

             (4)  If the Court is satisfied that the person has breached a term of the undertaking, the Court may make all or any of the following orders:

                     (a)  an order directing the person to comply with that term of the undertaking;

                     (b)  an order directing the person to pay to the Commonwealth an amount up to the amount of any financial benefit that the person has obtained directly or indirectly and that is reasonably attributable to the breach;

                     (c)  any order that the Court considers appropriate directing the person to compensate any other person who has suffered loss or damage as a result of the breach;

                     (d)  any other order that the Court considers appropriate.

213  At the end of subsection 453-1(1)

Add:

                   ; (g)  a suspected contravention of any of the terms of an undertaking under section 439-25.

214  After section 453-1

Insert:

453-2   Notice to produce books

Aboriginal and Torres Strait Islander corporation or eligible person

             (1)  The Registrar may, by notice given to any of the following persons:

                     (a)  an Aboriginal and Torres Strait Islander corporation;

                     (b)  an eligible person for an Aboriginal and Torres Strait Islander corporation;

require the production of specified books relating to the affairs of the corporation. The person must comply with the requirement.

Person in possession of books

             (2)  The Registrar may, by notice given to a person, require the production of specified books that are in the person’s possession and that relate to the affairs of an Aboriginal and Torres Strait Islander corporation or a related body corporate or connected entity. The person must comply with the requirement.

Notice

             (3)  A notice under this section:

                     (a)  must be in writing; and

                     (b)  may be given personally or by post; and

                     (c)  must specify the person to whom the books are to be produced, who must be either the Registrar or a specified authorised officer; and

                     (d)  must specify the place and time for production of the books, which must be reasonable in all the circumstances.

             (4)  A notice under this section may specify that books are to be produced immediately, if it is reasonable in all the circumstances for the Registrar to require a person to do so.

Offence

             (5)  A person commits an offence if:

                     (a)  the person is given a notice under this section; and

                     (b)  the person does an act or omits to do an act; and

                     (c)  the result is that a requirement in the notice is not complied with.

Penalty:  100 penalty units or imprisonment for 2 years, or both.

             (6)  Subsection (5) does not apply to the extent the person has a reasonable excuse.

Note:          A defendant bears an evidential burden in relation to the matter in subsection (6): see subsection 13.3(3) of the Criminal Code .

Eligible persons

             (7)  The following are eligible persons for an Aboriginal and Torres Strait Islander corporation:

                     (a)  a person who is or has been an officer of the corporation;

                     (b)  a person who is or has been an employee, agent, banker, solicitor or auditor of the corporation;

                     (c)  a person who is acting, or has acted, in any other capacity on behalf of the corporation.

453-3   Registrar’s power if books are not produced

             (1)  If a person fails to produce books in compliance with a notice given to the person under section 453-2, the Registrar may, by written notice given to the person, require the person to state:

                     (a)  where the books may be found; and

                     (b)  who last had possession, custody or control of the books and where that person may be found.

The person must comply with the requirement.

             (2)  A person commits an offence if:

                     (a)  the person is given a notice under subsection (1); and

                     (b)  the person does an act or omits to do an act; and

                     (c)  the result is that a requirement in the notice is not complied with.

Penalty:  100 penalty units or imprisonment for 2 years, or both.

             (3)  Subsection (2) does not apply to the extent that:

                     (a)  the person has stated the matter to the best of the person’s knowledge or belief; or

                     (b)  the person has a reasonable excuse.

Note:          A defendant bears an evidential burden in relation to the matters in subsection (3): see subsection 13.3(3) of the Criminal Code .

453-4   Registrar’s power to require identification of property

             (1)  If, under section 453-2, the Registrar has the power to require a person to produce books relating to the affairs of an Aboriginal and Torres Strait Islander corporation, the Registrar may, whether or not the Registrar exercises that power, by written notice given to the person, require the person:

                     (a)  to identify property of the corporation; and

                     (b)  to explain how the corporation has kept account of that property.

The person must comply with the requirement.

             (2)  A person commits an offence if:

                     (a)  the person is given a notice under subsection (1); and

                     (b)  the person does an act or omits to do an act; and

                     (c)  the result is that a requirement in the notice is not complied with.

Penalty:  100 penalty units or imprisonment for 2 years, or both.

             (3)  Subsection (2) does not apply to the extent that:

                     (a)  the person has, to the extent that the person is capable of doing so, performed the acts referred to in paragraphs (1)(a) and (b); or

                     (b)  the person has a reasonable excuse.

Note:          A defendant bears an evidential burden in relation to the matters in subsection (3): see subsection 13.3(3) of the Criminal Code .

215  Section 453-5 (heading)

Omit “ Production of books or attendance to ”, substitute “ Notice to give information or ”.

216  Subsection 453-5(1)

After “grounds,”, insert “suspects or”.

217  Paragraph 453-5(1)(b)

Repeal the paragraph.

218  Subparagraph 453-5(2)(c)(i)

Omit “or produce the documents”.

219  Subsection 453-5(3)

Omit “, produce the documents”.

220  At the end of Division 453

Add:

453-15   Requirement made of body corporate

                   If the Registrar has the power, under this Division, to make a requirement of a body corporate, the Registrar also has the power to make that requirement of a person who is or has been an officer or employee of the body corporate.

221  Paragraphs 456-1(1)(a) and 456-5(1)(a)

Omit “453-5”, substitute “453-2”.

222  Paragraph 456-10(1)(a)

Omit “an authorised officer under section 453-1 or section 453-5”, substitute “a person under section 453-1 or 453-2”.

223  Paragraph 456-10(1)(b)

Omit “an authorised officer”, substitute “a person”.

224  Subsections 456-10(2) to (6)

Omit “authorised officer”, substitute “person”.

225  Subsection 456-10(7)

Omit “authorised officer’s possession, the officer”, substitute “person’s possession, the person”.

226  Paragraph 456-10(7)(a)

Omit “authorised officer’s”, substitute “first person’s”.

227  Subsection 456-10(8)

Omit “authorised officer”, substitute “person”.

228  Subsection 456-10(9)

Omit “authorised officer, the Registrar or an approved person into whose possession the authorised officer”, substitute “person mentioned in that paragraph, or an approved person into whose possession that person”.

229  Subsection 456-10(10)

After “the person”, insert “of whom the requirement is made”.

230  Subsection 461-10(1)

Omit “453-5”, substitute “453-2”.

231  Section 700-1

Insert:

eligible person has the meaning given by subsection 453-2(7).

Part 12 Publication of notices

Corporations (Aboriginal and Torres Strait Islander) Act 2006

232  Subsections 187-15(5), 225-15(4), 268-25(8), 310-15(5), 336-5(10) and 353-10(4)

Omit “in the Gazette ”, substitute “on the Registrar’s website”.

233  Subsection 493-1(4)

Repeal the subsection, substitute:

             (4)  The Registrar must, as soon as practicable, publish a notice of the decision on the Registrar’s website.

234  Subsection 526-20(8)

Omit “in the Gazette ”, substitute “on the Registrar’s website”.

235  Section 658-15

Repeal the section, substitute:

658-15   Registrar to have a seal

                   The Registrar must have and use as the seal of the Registrar’s office a seal in such form as the Minister, by notifiable instrument, determines.

236  Paragraph 694-95(2)(b)

After “published”, insert “on a website,”.

237  Application—publication of notices

(1)       The amendments of the Corporations (Aboriginal and Torres Strait Islander) Act 2006 made by this Part, other than the amendment of section 658-15, apply in relation to the publication of a notice after this Part commences (whether the event the notice relates to occurred before or after this item commences).

(2)       A determination of the Minister that is in effect under section 658-15 of that Act immediately before this Part commences:

                     (a)  continues in effect despite the repeal and substitution of that section by this Part; and

                     (b)  may be revoked or varied after the commencement of this Part as if it were a notifiable instrument made under that section as substituted by this Part.

Part 13 Independent directors

Corporations (Aboriginal and Torres Strait Islander) Act 2006

238  Section 57-5 (after table item 72)

Insert:

72A

Directors may appoint other independent directors

section 246-17

this section is a replaceable rule

239  Section 57-5 (table item 74, column headed “Provision”)

After “ (1) ”, insert “ , (1A) ”.

240  Subsection 246-1(3)

Repeal the subsection.

241  Section 246-15

After “person”, insert “(other than an individual mentioned in paragraph 246-17(a) or (b))”.

242  After section 246-15

Insert:

246-17   Directors may appoint other independent directors (replaceable rule—see section 60-1)

                   The directors of an Aboriginal and Torres Strait Islander corporation may appoint one or more of the following persons as a director:

                     (a)  an individual who is not a member of the corporation;

                     (b)  an individual who is not an Aboriginal and Torres Strait Islander person.

243  After subsection 246-25(1)

Insert:

Independent directors (replaceable rule—see section 60-1)

          (1A)  A director of an Aboriginal and Torres Strait Islander corporation who is:

                     (a)  an individual who is not a member of the corporation; or

                     (b)  an individual who is not an Aboriginal and Torres Strait Islander person;

must not be appointed for a period exceeding 1 year.

Note:          A rule in a corporation’s constitution that modifies or replaces this replaceable rule cannot provide for a term of appointment that is inconsistent with this Act (see paragraph 66-1(5)(c)).

244  Application of amendments

The amendments to the Corporations (Aboriginal and Torres Strait Islander) Act 2006 made by this Part apply in relation to the appointment of directors after this Part commences.

Part 14 Qualified privilege for auditors

Corporations (Aboriginal and Torres Strait Islander) Act 2006

245  Part 15-3 (heading)

Omit “ for Registrar, Minister etc. ”.

246  At the end of Part 15-3

Add:

Division 610 Qualified privilege for auditors

610-1   Auditors and other persons to enjoy qualified privilege in certain circumstances

Qualified privilege for auditor

             (1)  An auditor of an Aboriginal and Torres Strait Islander corporation has qualified privilege in respect of:

                     (a)  a statement that the auditor makes (orally or in writing) in the course of the auditor’s duties as auditor; or

                     (b)  a statement that the auditor makes (orally or in writing) on:

                              (i)  a report required to be prepared by the auditor under this Act or the regulations; or

                             (ii)  any statement, report or other document that is taken, for any purpose, to be part of that report; or

                     (c)  a notification of a matter that the auditor gives the Registrar.

Note:          If the auditor is an audit company, the company has qualified privilege under this subsection in respect of statements made, and notices given, by individuals on behalf of the company if those statements and notices can be properly attributed to the company.

Qualified privilege for registered company auditor acting on behalf of audit company

             (2)  If the auditor of the Aboriginal and Torres Strait Islander corporation is an authorised audit company, a registered company auditor acting on behalf of the company has qualified privilege in respect of:

                     (a)  a statement that the registered company auditor makes (orally or in writing) in the course of the performance, on behalf of the company, of the company’s duties as auditor; or

                     (b)  a statement that the registered company auditor makes (orally or in writing), on behalf of the company, on:

                              (i)  a report required to be prepared by the auditor under this Act or the regulations; or

                             (ii)  any statement, report or other document that is taken, for any purpose, to be part of that report; or

                     (c)  a notification of a matter that the registered company auditor gives the Registrar, on behalf of the company.

Extent of auditor’s duties—answering questions put to auditor by members

             (3)  For the purposes of this section, an auditor’s duties as auditor include answering questions put to the auditor (or the auditor’s representative) at an AGM.

Qualified privilege for person representing auditor at AGM

             (4)  A person who represents an auditor at an AGM has qualified privilege in respect of any statement that the person makes in the course of representing the auditor at that AGM.

Qualified privilege for subsequent publication

             (5)  A person has qualified privilege in respect of the publishing of a document:

                     (a)  prepared by an auditor of the Aboriginal and Torres Strait Islander corporation in the course of the auditor’s duties; or

                     (b)  required by or under this Act to be lodged (whether or not the document has been lodged).

             (6)  A person has qualified privilege in respect of the publishing of any statement:

                     (a)  made by an auditor as mentioned in subsection (1); or

                     (b)  made by a registered company auditor as mentioned in subsection (2); or

                     (c)  made by a person as mentioned in subsection (4).

247  At the end of Division 694

Add:

694-120   Meaning of qualified privilege

             (1)  Where this Act provides that a person has qualified privilege in respect of an act, matter or thing, the person:

                     (a)  has qualified privilege in proceedings for defamation; or

                     (b)  is not, in the absence of malice on the person’s part, liable to an action for defamation at the suit of a person;

as the case requires, in respect of that act, matter or thing.

             (2)  In subsection (1):

malice includes ill will to the person concerned or any other improper motive.

             (3)  Neither this section nor a provision of this Act that provides as mentioned in subsection (1) limits or affects any right, privilege or immunity that a person has, apart from this section or such a provision, as defendant in proceedings, or an action, for defamation.

248  Section 700-1

Insert:

qualified privilege has the meaning given by section 694-120.

249  Application of amendments

The amendments of the Corporations (Aboriginal and Torres Strait Islander) Act 2006 made by this Part apply in relation to statements made, notices given and publications occurring after this Part commences.

Part 15 Resolutions to be the same in all material respects

Corporations (Aboriginal and Torres Strait Islander) Act 2006

250  Section 290-30 (heading)

Omit “ cannot be varied ”.

251  Section 290-30

After “same”, insert “, in all material respects,”.

252  At the end of Division 290

Add:

290-55   Regulations may prescribe circumstances in which notice etc. is taken to be the same in all material respects

             (1)  The regulations may prescribe circumstances in which a notice, explanatory statement or document mentioned in paragraph 290-20(1)(a), (b) or (c) is taken to be the same, in all material respects, as the proposed notice, explanatory statement or document lodged under paragraph 290-5(1)(a), (b) or (c).

             (2)  The regulations may also prescribe circumstances in which a document mentioned in subsection 290-25(1) is taken to be the same, in all material respects, as the document lodged under paragraph 290-5(1)(d).

             (3)  The regulations may also prescribe circumstances in which a resolution mentioned in section 290-30 is taken to be the same, in all material respects, as the proposed resolution set out in the proposed notice lodged under paragraph 290-5(1)(a).

253  Application of amendments

The amendments of section 290-30 of the Corporations (Aboriginal and Torres Strait Islander) Act 2006 made by this Part apply in relation to resolutions voted on after this Part commences.

Part 16 Unanimous requests for special administration

Corporations (Aboriginal and Torres Strait Islander) Act 2006

254  Subsection 487-10(1)

Omit “subsection (2)”, substitute “subsections (2) and (2A)”.

255  After subsection 487-10(2)

Insert:

          (2A)  Subsection (1) does not apply if all of the corporation’s directors have requested the Registrar in writing to appoint a special administrator.

256  Application of amendments

The amendments of section 487-10 of the Corporations (Aboriginal and Torres Strait Islander) Act 2006 made by this Part apply in relation to determinations that a corporation is to be under special administration made by the Registrar after this Part commences.

Part 17 Insolvency

Corporations (Aboriginal and Torres Strait Islander) Act 2006

257  At the end of section 166-10

Add:

Note:          If an application is made under this section and the Court is satisfied that the corporation is insolvent, the Court may order that the corporation be wound up (see section 526-17).

258  Subsection 526-1(3)

After “section 526-15”, insert “or 166-10”.

259  After section 526-10

Insert:

526-12   Presumptions of insolvency

             (1)  For the purposes of paragraph 526-5(i), an Aboriginal and Torres Strait Islander corporation is presumed to be insolvent if:

                     (a)  an authorised officer has stated in a written report to the Registrar under subsection 453-1(1) that, in the officer’s opinion, the corporation:

                              (i)  has failed to keep financial records as required by subsection 322-10(1); or

                             (ii)  has failed to retain financial records for 7 years as required by subsection 322-10(2); and

                     (b)  before the officer made the statement, the corporation was given at least 14 days to produce the financial records to the officer.

Note:          There may be other grounds on which a corporation is presumed to be insolvent (see sections 526-35 and 526-40).

             (2)  For the purposes of paragraph 526-5(i), an Aboriginal and Torres Strait Islander corporation is also presumed to be insolvent if a special administrator for the corporation has stated in a written report given to the Registrar for the purposes of this subsection that, in the special administrator’s opinion, the corporation:

                     (a)  has failed to keep financial records as required by subsection 322-10(1); or

                     (b)  has failed to retain financial records for 7 years as required by subsection 322-10(2).

Note:          There may be other grounds on which a corporation is presumed to be insolvent (see sections 526-35 and 526-40).

             (3)  Subsections (1) and (2) do not apply in relation to a contravention of subsection 322-10(1) that is only minor or technical.

             (4)  A presumption for which this section provides operates except so far as the contrary is proved for the purposes of the proceeding concerned.

260  Paragraph 526-15(4)(c)

Omit “director;”, substitute “director.”.

261  Paragraph 526-15(4)(d)

Repeal the paragraph.

262  After section 526-15

Insert:

526-17   Order made on application under section 166-10

                   If, on application under section 166-10, the Court is satisfied that an Aboriginal and Torres Strait Islander corporation is insolvent, the Court may order that the corporation be wound up on the ground that the corporation is insolvent.

263  Application of amendments

The amendments of the Corporations (Aboriginal and Torres Strait Islander) Act 2006 made by this Part apply in relation to applications made to the Court after this Part commences.

Part 18 Conflicting duties under State or Territory legislation

Corporations (Aboriginal and Torres Strait Islander) Act 2006

264  At the end of subsection 265-1(1)

Add:

Note 3:       Section 265-23 makes special provision for actions done to comply with obligations under prescribed State and Territory legislation.

265  Subsection 265-5(1) (note 3)

Repeal the note, substitute:

Note 3:       Section 265-23 makes special provision for actions done to comply with obligations under prescribed State and Territory legislation.

Note 4:       Section 265-35 deals with the situation of directors of wholly-owned subsidiaries.

266  Subsection 265-10(1) (note 3)

Repeal the note, substitute:

Note 3:       Section 265-23 makes special provision for actions done to comply with obligations under prescribed State and Territory legislation.

Note 4:       The contact person for the corporation is covered by the reference to an employee of the corporation.

267  Subsection 265-15(1) (note 4)

Repeal the note, substitute:

Note 4:       Section 265-23 makes special provision for actions done to comply with obligations under prescribed State and Territory legislation.

Note 5:       The contact person for the corporation is covered by the reference to an employee of the corporation.

268  After section 265-20

Insert:

265-23   Acts done to comply with State and Territory legislation obligations

             (1)  A person who is a director or other officer, or an employee, of an Aboriginal and Torres Strait Islander corporation does not contravene subsection 265-1(1), 265-5(1), 265-10(1) or 265-15(1), and does not breach the person’s equivalent duties at common law and in equity, merely because of doing (or refraining from doing) a particular act if the person does (or refrains from doing) the act:

                     (a)  in good faith; and

                     (b)  with the belief that doing (or refraining from doing) the act is necessary to ensure that the corporation complies with an obligation under a prescribed law, or a prescribed provision of a law, of a State or Territory.

             (2)  A law, or a provision of a law, of a State or Territory prescribed by the regulations for the purposes of this section must relate to obligations on Aboriginal and Torres Strait Islander corporations that hold rights and interests in land for the benefit of Aboriginal and Torres Strait Islander persons.

269  Paragraph 265-30(2)(b)

Omit “section 265-20 to the extent to which it operates”, substitute “sections 265-20 and 265-23 to the extent to which they operate”.

Part 19 Minor technical amendments

Corporations (Aboriginal and Torres Strait Islander) Act 2006

270  Subsection 85-15(3)

Omit “this”, substitute “the requirement in subsection (2)”.

271  Paragraph 150-15(2)(a)

Omit “uncontactable”, substitute “not contactable”.

272  Subsection 201-15(2)

Omit “21 days”, substitute “28 days”.

273  Subsection 249-10(2)

Repeal the subsection.

274  Subparagraph 279-25(1)(a)(iii)

Omit “; or”, substitute “; and”.

275  Subsection 304-15(1)

After “section 21-1”, insert “, 22-1 or 23-1”.

276  Section 407-15 (heading)

Omit “ Telephone or email ”, substitute “ Oral or written ”.

277  Subsections 407-15(1) and (2)

Omit “telephone or email” (wherever occurring), substitute “oral or written”.