Regulatory powers

The Registrar has a number of regulatory powers under the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (CATSI Act) to intervene to solve problems within corporations. The type of power the Registrar uses would depend on the type of rules of the Act and/or the rule book of the corporation which were broken. The Registrar regularly intervenes to examine the records and documents of the corporation in order to detect and prevent the corporation from breaking the rules of the Act and the rule book of the corporation.

See also the detailed policy statement PS05: The Registrar's powers to intervene (PDF 85kb).

Summary of the Registrar's regulatory powers

Meetings

The Registrar may if the need arises:

  • convene meetings of interested parties (s. 439-5)
  • call a general meeting (formerly SGMs) (s. 439-10)
  • call an annual general meeting (s. 439-15).

The Registrar is to chair these meetings or authorise another person to do so.

Compliance notices

Registrar requires compliance with the Act (s. 439-20). (This is the old s. 60A notice under the ACA Act).

Examinations

The Registrar may appoint an authorised officer (examiner) at any time to examine the books and records of a corporation (s. 453-1).

Production of books or attendance to answer questions

Under s. 453-5 the Registrar may give notice to a person who has some knowledge of the examinable affairs of the corporation to:

  • provide the Registrar with information about the corporation or its examinable affairs
  • produce any books and records about the corporation
  • appear before the Registrar to answer questions about the corporation.

Issue warrants

Division 456 gives the Registrar the power ask the court to issue warrants to obtain information about a corporation if the information can’t be obtained via s. 453-1 or s. 453-5.

Protection for whistleblowers

There is provision for whistleblowers in the CATSI Act (Division 466).

External administration

Under the CATSI Act the Registrar needs to make several determinations when appointing a special administrator:

  • that the corporation be placed in special administration (s. 487-1)
  • the appointment of a special administrator (the person) (s. 490-1 and s. 490-5)
  • the period of the appointment (s. 487-1 and s. 487-15)
  • whether the directors will be removed from office during the term of the special administration (s. 496-5).

Note: Approval by the minister is not required for the appointment of a special administrator.

Grounds for special administration

Some increased powers (via additional grounds) are available for appointment of special administrators. All of the grounds for an appointment are detailed in s. 487-5. The additional grounds are:

  • the corporation has failed to comply with a s. 439-20 compliance notice
  • the corporation has failed to lodge its annual reports (Part 7-3)
  • if there are disputes that interfere with the corporation’s operations
  • if a majority of directors write to the Registrar and ask for the appointment.

Disqualifying people from managing corporation

The CATSI Act has provisions to disqualify people from managing corporations (i.e. from being a director or a chief executive officer or chief financial officer). There are three ways this can happen:

  • automatic disqualification (s. 279-5)
  • the court may decide a person is disqualified (s. 279-15)
  • the Registrar has a power to disqualify a person (s. 279-30).

Winding up

The CATSI Act has provisions for the winding up of corporations (Division 526).

Deregistrations

The CATSI Act has provisions for the deregistration of corporations (Division 546).

Reviewable decisions

  • Internal reviews
  • Administrative Appeals Tribunal (AAT) reviews