Company ABC is a medium-sized unlisted Aboriginal and Torres Strait Islander corporation (a type of public company)
Question:
Company ABC is a medium-sized unlisted Aboriginal and Torres Strait Islander corporation (a type of public company) regulated under The Corporations (Aboriginal and Torres Strait Islander) Act 2006.
Helpful information: All members of thecommunity automatically become members of ABC Corp on their 18th Birthday, evidenced by their dates of birth in the State's Register of Birth, Deaths and Marriages or formal attestation by a community Elder. Undercl. 3 of the corporation's Rule Book, in order to be eligible to becomemembers of ABC Corporation, people "must: Be aged 18 years or more; and Be an Aboriginal person who is normally and permanently resident in ABC a lands and communities serviced by the corporation, and recognised by the ABC community as such."
A millionaire corporate raider who claims Aboriginal heritage, and has a letter from Aunty M, an elder of XYZ's Indigenous peoples, stating that he is an Aboriginal man. Since writing the letter, Aunty has sadly passed away and, no one in the XYZ community knows anything of the raiders links with their people. A number of the raiders' recent corporate ventures have proven financially disastrous.
Uncle B an Elder and one of five directors of ABC, is opposedto the corporate raider taking over ABC's Corp as the raider has no links to ABC culture or country.
What are the relevant Laws and Regulations under the Corporations Act 2001 and CASTI Act to deal with the following issues?
1. Indigenous corporationsdo not have shares, how else coulda individual potentially obtaincontrol over ABC?
2. Assuming control has been gained, how may an individual use such a corporation for individual financial gain? Could any asset or dividend stripping involve a breach of directors' or officers' duties? Why? What remedies could be available to members?
3. Using Australian Company Law how mightthe community and ABC prevent an individual from taking control of the corporation?
Organisational Behaviour Engaging People And Organisations
ISBN: 272389
2nd Edition
Authors: Ricky W. Griffin, Jean M. Phillips, Stanley M. Gully, Andrew Creed, Lynn Gribble, Moira Watson