Corporations (Aboriginal and Torres Strait Islander) Act 2006

CHAPTER 4 - MEMBERS AND OBSERVERS  

PART 4-4 - PROTECTION OF MEMBERS ' INTERESTS  

Division 172 - What protections apply to variations or cancellations of class rights?  

SECTION 172-1   VARYING AND CANCELLING CLASS RIGHTS  
If constitution sets out procedure

172-1(1)    
If an Aboriginal and Torres Strait Islander corporation ' s constitution sets out the procedure for varying or cancelling rights of members in a class of members, those rights may be varied or cancelled only in accordance with the procedure. The procedure may be changed only if the procedure itself is complied with.

If constitution does not set out procedure

172-1(2)    
If an Aboriginal and Torres Strait Islander corporation ' s constitution does not set out the procedure for varying or cancelling rights of members in a class of members, those rights may be varied or cancelled only by special resolution of the corporation and:

(a)    by special resolution passed at a meeting of the class of members whose rights are being varied or cancelled; or

(b)    with the written consent of members with at least 75 % of the votes in the class.

Notice of variation

172-1(3)    
The corporation must give written notice of the variation or cancellation to the members of the class within 7 days after the variation or cancellation is made.

172-1(4)    
The corporation commits an offence if it contravenes subsection (3) .

Penalty: 5 penalty units.

172-1(5)    
An offence against subsection (4) is an offence of strict liability.

Note: