Special administration end – Githabul Nation Aboriginal Corporation RNTBC

The Registrar of Aboriginal and Torres Strait Islander Corporations, Ms Tricia Stroud, has today ended the special administration of the Githabul Nation Aboriginal Corporation RNTBC (GNAC).

GNAC was placed under special administration on 17 September 2024 following an examination of its books. The period of special administration was extended twice to allow sufficient time to address significant compliance and financial issues.

GNAC initially entered special administration due to a range of serious non compliance matters, including failing to maintain financial accounts or provide any financial information in its general reports for the 2021, 2022 and 2023 financial years.

Soon after the special administration commenced, the administrators identified that GNAC was insolvent, with most debt owed to the Australian Taxation Office. Because no financial accounts existed, determining the corporation’s actual financial position and assessing its viability required considerable time and detailed work. Given the insolvent position, GNAC could not be returned to member control.

The special administrators appointed a small business restructure (SBR) practitioner to manage an SBR process and develop a proposal for GNAC’s creditors. The creditors accepted the SBR proposal, enabling GNAC to return to solvent status and allowing the corporation to be handed back to its members.

During the special administration, the administrators also rectified GNAC’s financial reporting processes and engaged an external bookkeeping firm to support the corporation’s ongoing financial management.

To assist with monitoring GNAC’s governance as it transitions out of special administration, the corporation will be required to provide additional reporting to ORIC for a set period.

This week, ORIC delivered governance training for the incoming board. The corporation has now been returned to the control of its members, and the newly appointed board has officially commenced its duties.