Addressing compliance notices
The Registrar has a power under the CATSI Act to issue compliance notices. A compliance notice is an instruction to a corporation to fix something.
When is a compliance notice issued
The Registrar may issue a compliance notice after an examination or if they become aware of a matter requiring action by the corporation another way. For example, through a report of concern.
The CATSI Act says the Registrar can issue a compliance notice to ask a corporation to:
- comply with the CATSI Act or its rule book
- address:
- an irregularity in the corporation's affairs
- a matter that may cause the corporation to be placed under special administration.
What’s in a compliance notice
A compliance notice will explain why the Registrar has issued the notice. For example, it will say what requirements of the CATSI Act the corporation is suspected of breaching.
It will also explain what action the corporation needs to take and the date by which it needs to do so.
While issuing a compliance notice is a regulatory action, it is issued where the Registrar is confident the corporation has the capacity and commitment to address the matters.
What happens with a compliance notice
The compliance notice is sent to the directors of the corporation.
Most compliance notices are published on the public Register of Aboriginal and Torres Strait Islander Corporations. The Registrar may decide not to publish a compliance notice if it contains sensitive information.
The Registrar monitors if the corporation takes the action set out in the compliance notice by the specified date. When the Registrar is satisfied the corporation has taken all the actions set out in the compliance notice, they will send a letter to the directors of the corporation saying so.
What happens if a corporation does not take the action set out in the compliance notice
If the Registrar is not satisfied with the corporation’s response to the compliance notice, they will consider further regulatory action, which may include:
- calling a general meeting to express their concerns to members
- issuing a show cause notice to the corporation asking it to explain why it should not be placed under special administration
- issuing a notice to the corporation asking it to produce information or documents
- referring the corporation for prosecution for failing to comply with any strict liability offences set out in the compliance notice.
Is there a procedural fairness process for compliance notices
Before issuing a final compliance notice, the Registrar will usually give the corporation the opportunity to review a draft compliance notice. The corporation can then explain if it does not agree with any of the actions set out in the notice.
The Registrar will use the corporation’s response to decide if a final compliance notice should be issued or if changes need to be made to the final compliance notice.
The Registrar’s decision to issue a compliance notice is one that an affected party can ask to be reviewed.