Rules about suspending members and directors
The Corporations (Aboriginal and Torres Strait Islander) Act 2006 (CATSI Act) does not include member and director suspension provisions.
The Registrar of Aboriginal and Torres Strait Islander Corporations (the Registrar) will not approve rules in a corporation’s rule book that allow the suspension of directors.
A corporation’s rule book may include rules that allow a member to be suspended.
Suspending directors
The Registrar cased registering director suspension rules in March 2026. Existing director suspension rules that were registered prior to March 2026 may be revoked.
Directors need to be able to fulfil their duties to ensure the proper and efficient management of the corporation.
The CATSI Act includes provisions about the removal of directors and cancellation of memberships. Members and directors should make use of these provisions in the CATSI Act to deal with directors who have lost the trust and confidence of members.
Behaviour can also be included as a director eligibility requirement set out in the corporation’s rule book to avoid the appointment of directors who display disruptive, threatening or violent behaviour.
Suspending members
Members cannot be suspended from exercising their rights under the CATSI Act.
The Registrar will not agree to register member suspension rules that prevent members from exercising their rights under the CATSI Act. For example, a rule could not prevent a member from participating in meetings and voting on resolutions. But a rule could suspend a member from attending a meeting in-person and instead require the suspended member to participate in meetings virtually.
Corporations seeking to adopt member suspension rules must include in their rule book how the rule works if the member is also a director. The Registrar will not register a rule that prevents a director from fulfilling their duties under the CATSI Act.
The Registrar will also not agree to register member suspension rules for registered native title bodies corporate (RNTBCs) that are inconsistent with the membership requirements set out in the Native Title Act 1993.
Suspending a member is not cancellation or removal. Learn more about how to remove a director or cancel a membership.
Member suspension rules
When considering whether to register member suspension rules, the Registrar or their delegate will consider if the draft rules are clear about:
- What suspension means for a member in practice? For example, what are they suspended from doing and for how long?
- Who makes the decision to suspend a member? For example, is it directors or members and how is this decision made?
- If a member is warned or given an opportunity to explain why they should not be suspended before a suspension decision is made?
- Whether a member can appeal a suspension decision and what the appeal process is, including who would consider an appeal request?
- What is the administrative process to notify a member of their suspension and its end, including the method and timing of notifying them?
- What would cause a member to be suspended?
- Is there a maximum time a member can be suspended for?
- Are there circumstances when the suspension rule could not be exercised? For example, members cannot be suspended immediately before a general meeting.
If the rules are not clear regarding these questions, the Registrar or their delegate may decide not to register the suspension rules.
Role of the Registrar
The Registrar will not agree to register suspension rules that include the Registrar in the suspension process. For example, the Registrar would not agree to register rules that require the Registrar to:
- decide an appeal request from a member about their suspension
- consider a response from a member explaining why they should not be suspended
- decide if a member should be suspended.
The Registrar will consider reports of concern and disputes about a suspension that is not in accordance with the corporation’s rule book or the CATSI Act.
The Registrar may change a corporation’s rule book if they become aware of suspension rules that are not workable for the corporation.