A Comparison of the Internal Governance Rules of Indigenous Corporations : Before and after the Introduction of the Corporations (Aboriginal and Torres Strait Islander) Act 2006

The Corporations (Aboriginal and Torres Strait Islander) Act 2006 (Cth) (CATSI Act) enables indigenous Australians to run their businesses and associations in the form of indigenous corporations. According to the Explanatory Memorandum to the Corporations (Aboriginal and Torres Strait Islander) Bill 2006 (Cth), the CATSI Act seeks to meet ‘the special incorporation needs of indigenous people' in a flexible legislative framework that allows corporations registered under the Act ‘to accommodate specific cultural practices and tailoring to reflect the particular needs and circumstances of individual groups'. The legislation replaced the Aboriginal Councils and Associations Act 1976 (Cth) (ACA Act). One criticism directed at the ACA Act was that its provisions relating to the internal governance rules of associations incorporated under the Act were applied too rigidly. Internal governance rules play a crucial role in an organisation as they determine the manner in which the organisation is managed. Appropriately tailored internal governance rules have an added importance in the context of indigenous corporations, as they might also permit the adoption of culturally appropriate internal governance practices. This article compares the internal governance rules provisions in the CATSI Act with those in the ACA Act to determine whether the current legislation has the potential to address the criticisms directed at the ACA Act on this point. It also assesses the role played by the Office of the Registrar of Indigenous Corporations in relation to approving the internal governance rules of indigenous corporations