Explanatory Memorandum(circulated by authority of the Minister for Families, Community Services and Indigenous Affairs, the Honourable Mal Brough, MP)
1.1. The Corporations Amendment (Aboriginal and Torres Strait Islander Corporations) Bill 2006 amends the Corporations Act 2001 as a consequence of the Corporations (Aboriginal and Torres Strait Islander) Bill 2005 (the CATSI Bill).
1.2. The amendments remove duplication arising from provisions in the CATSI Bill which mirror provisions in the Corporations Act. The amendments also remove areas of doubt and potential regulatory gaps that could be created by implementing the CATSI Bill alongside the Corporations Act.
Effect of principal provisions
1.3. The CATSI Bill closely aligns with the Corporations Act in a number of key areas including the duties of officers and the disqualification of persons from managing corporations. The amendments ensure that the CATSI Bill and the Corporations Act will work together seamlessly.
1.4. Duplication is removed in the areas of duties of officers and employees, winding-up, receivers, courts, proceeding and offences. The Bill removes potential doubt by confirming that the Corporations Act otherwise applies to corporations registered under the CATSI Bill. Potential regulatory gaps are prevented by implementing a framework recognising the disqualification of persons from managing corporations under both pieces of legislation.
1.5. The CATSI Bill, when enacted, will replace the Aboriginal Councils and Associations Act 1976 (the ACA Act) to improve governance and capacity in the Indigenous corporate sector. The CATSI Bill aligns with modern corporate governance standards and corporations law. At the same time it maintains a special statute of incorporation that takes account of the special risks and requirements of the Indigenous corporate sector.
Financial impact statement
1.6. There is no financial impact.