On 1 July 2007, The Corporations (Aboriginal and Torres Strait Islander) Act 2006 (CATSI Act) came into effect. The CATSI Act provides Indigenous corporations with a fit-for-purpose regulatory framework, making it easier for Aboriginal and Torres Strait Islander persons to form and manage corporations.
The CATSI Act has allowed many Indigenous communities to deliver essential services, including land holding, housing, health, education, employment and native title services. The CATSI Act supports these corporations by promoting high standards of corporate governance and financial management. The CATSI Act also provides regulatory tools for assisting corporations in distress, such as special administration provisions.
In December 2019, a review of the CATSI Act was announced and on 21 September 2020 CA ANZ provided feedback to NIAA on the CATSI Act review draft report (Phase 2: review and consultation)
The key points from our submission:
- We encourage NIAA to consider, where possible, alignment with existing legislation and frameworks such as the Corporations Act 2001 to promote consistency and remove any ambiguity when stakeholders deal with the CATSI Act.
- We support the re-naming of the special administration (SA) process and suggest any alternatives focus on the positive objective of the process, that is to return the corporation back to directors and members.
- Increasing awareness and education by providing resources and easily accessible information in areas such as Governance may encourage pro-active engagement from directors and members of CATSI corporations.