Examinations

Examinations are sometimes called 'healthy organisation checks'. During an examination, we assess a corporation’s corporate governance and financial health. 

The Registrar's power to examine a corporation is a regulatory power unique to the CATSI Act.

Corporations are legally required to cooperate with the examination and give relevant documents to the examiner.

An examiner will review a corporation's books and records to check:

• the corporation is being run properly in line with its rule book and the CATSI Act
• the corporation is managing its finances correctly with proper records, procedures and policies
• the corporation's financial position
• the directors, officers and employees are performing their duties appropriately
• any material personal interests and benefits to related parties are being managed appropriately.

An examination may find a corporation is running well. 

If there are problems it helps the Registrar consider how to:

• help the corporation fix the problems 
• use other regulatory powers.

When examinations happen

The Registrar conducts a rolling program of regular examinations. 

The Registrar may examine a corporation in response to identified issues.

Process of an examination

The Registrar will send a letter to the corporation, along with a Notice of Examination. The letter will tell the corporation:

• that an examination will be conducted
• when the examination will occur
• who will conduct the examination
• what records and paperwork the examiner will need to see.

The examiner will contact the corporation to request documents and arrange to visit the corporation. This visit is called ‘fieldwork’.

The examiner will write a report about what they have found and send the report to the Registrar.

Possible outcomes

Possible outcomes from an examination: 

• The corporation is operating well and no further action is needed. The Registrar issues a management letter to the corporation.
• A less serious matter needs to be fixed. The Registrar issues a compliance notice requiring the corporation to fix the problems.
• There are serious matters raised. The corporation must explain why a special administrator should not be appointed.

Self examination

You can also check your own corporate governance and financial management standards with the healthy corporation checklist.