Indigeneity requirement

Members can decide if their corporation will allow non-Indigenous members. If members of a corporation allow non-Indigenous members, this must be included in the corporation’s rule book. 
An Indigeneity provision in the CATSI Act is that the majority (more than half) of corporation members must be Aboriginal and Torres Strait Islander persons. So, in a corporation with: 

• 5 or more members, 51% of the members must be Aboriginal and Torres Strait Islander persons 
• 2–4 members, all the members, or all but one of the members, must be Aboriginal and Torres Strait Islander persons 
• only one member, that member must be an Aboriginal and Torres Strait Islander person. 

Corporations can also set out in their rule book that the proportion of Aboriginal and Torres Strait Islander persons they require is higher than the majority but not lower.

Corporations can allow bodies corporate to be a member (‘corporate members’). To be counted as an Indigenous member, a corporate member must be Indigenous-controlled. 

Government entities, including local councils, are generally not considered to be Indigenous controlled. 

Learn more about membership requirements.

Recording Indigeneity of your members

If your corporation allows non-Indigenous people or bodies corporate as members, you must record which members are non-Indigenous on your register of members.

All directors of a corporations must be individuals who are Aboriginal and/or Torres Strait Islander people unless your rule book allows non-Indigenous people to be a director.

If a corporation’s rule book allows non-Indigenous people to become a director, a majority of the directors (including non-member directors) must be Aboriginal and/or Torres Strait Islander people.

When a person gives their consent to become a director, they must sign a declaration that they are eligible to be a director. The declaration includes a confirmation of their Indigeneity (unless the corporation allows non-Indigenous people to become a director as noted above).

Learn more about director requirements. 

Responsibility for checking

Each corporation is responsible for checking and accepting the Indigeneity of individual members, corporate members, and directors.

The Registrar’s focus is not on the Indigeneity of individuals but on being satisfied that corporations meet the Indigeneity requirements and are Aboriginal and Torres Strait Islander owned and controlled. The Registrar doesn't determine a person's Indigeneity. 

At registration, the Registrar will seek evidence from corporations with the following characteristics:

• corporation’s corporate member is not an Aboriginal and Torres Strait Islander corporation
• corporation has 20 or fewer members.

Where the Registrar receives a report of concern regarding the Indigeneity of an individual member or director, ORIC will consider whether:

• it raises a reasonable concern that a corporation is not meeting the Indigeneity provisions of the CATSI Act, or 
• the corporation has a non Indigenous member or director which is not expressly provided for in its rule book. 

The Registrar may ask a corporation to provide evidence it meets the Indigeneity requirement(s) of the CATSI Act where there is a potential risk the corporation is not.

Failure to comply with the Indigeneity requirement

If your proposed corporation does not meet the Indigeneity requirement, we may refuse to register your corporation.

If your existing corporation no longer meets the Indigeneity requirement, we may:

• issue a notice to the corporation requiring the corporation to address the problem and ensure it meets the CATSI Act requirement
• request the Court wind up the corporation if the corporation fails to comply with the notice.