Former Hopevale director disqualified, fined and ordered to repay corporation funds

Former director of Nguurruumungu Indigenous Corporation (ICN 7592), Brian Neil Cobus, has been disqualified from managing Aboriginal and Torres Strait Islander corporations for 5 years, and ordered to pay a $200,000 penalty after the Federal Court of Australia found he breached his duties as a director under the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (CATSI Act). 

On 22 September 2026, the Court found that Mr Cobus used corporation funds without the approvals required by the corporation’s rules and failed to ensure the corporation kept proper financial records. The Court found that Mr Cobus:

• used his position as a director to authorise payments totalling more than $482,000 for his personal benefit. The payments were not approved by the board or members and were not made for the corporation's purposes. 
• failed to ensure the corporation kept records properly explaining payments totalling almost $784,000, preventing the preparation and audit of true and fair financial reports. 

In doing so, Mr Cobus breached his duties as a director to act with care and diligence, act in good faith in the best interests of the corporation, and not use his position for personal gain.

The Court ordered that Mr Cobus:

• be disqualified from managing Aboriginal and Torres Strait Islander corporations for 5 years
• pay a $200,000 penalty to the Commonwealth
• repay $482,478.04 to Nguurruumungu Indigenous Corporation
• pay the Registrar's legal costs. 

In disqualifying Mr Cobus for 5 years, Justice Stewart emphasised the need to protect Aboriginal and Torres Strait Islander corporations and their members. The Court noted that Mr Cobus currently held directorships in 2 corporations and could otherwise take on other management roles.

Registrar of Aboriginal and Torres Strait Islander Corporations, Tricia Stroud said, ‘Directors are entrusted with managing corporation resources for the benefit of members and the community.’

‘Members expect directors to look after corporation money and make decisions that benefit the corporation, not themselves.’

‘Today's outcome sends a clear message that directors can be held accountable when they misuse corporation funds or fail to meet their responsibilities.’

‘It is also a reminder for corporation members to take an active interest in how their corporation is run. Strong governance depends on members knowing and exercising their rights and being vigilant in holding directors to account.’

Aboriginal and Torres Strait Islander corporations play an important role in communities across Australia. Directors are responsible for managing corporation resources responsibly and ensuring appropriate records are kept. 

Background

Brian Neil Cobus was a director of Nguurruumungu Indigenous Corporation (ICN 7592) from 2011 until 2024. He also served in various director positions in other corporations during the period. At the time of handing down the orders he was a current director of 2 other corporations.

The proceedings were brought by the Registrar of Aboriginal and Torres Strait Islander Corporations in the Federal Court of Australia following an 8-month investigation by the Office of the Registrar of Indigenous Corporations (ORIC). 

The legislative provisions breached were sections 265-1(1), 265-5(1), 265-10(1) and 363-1(1) of the CATSI Act.

Nguurruumungu Indigenous Corporation was registered in 2011 and is based in Cooktown, Queensland. The corporation’s sole source of income during the period was derived through an agreement under which mining royalty payments and related income from the Cape Flattery Silica Mine are distributed through Hopevale Congress Aboriginal Corporation RNTBC for the benefit of organisations within the Hopevale community.