The Office of the Registrar of Indigenous Corporations (ORIC) has decided not to place the Bunuba Dawangarri Aboriginal Corporation (BDAC) under special administration despite requests to do so from directors and members.

The decision, outlined in a detailed letter dated 7 June 2024, followed a review of the current governance and financial status of the corporation.

In late May 2024, a number of directors of BDAC contacted ORIC requesting the corporation be placed under special administration.

A number of letters were sent to ORIC from parties within BDAC that month. One included minutes of a board meeting where a number of issues were raised, another included a petition from more than 10 per cent of BDAC members calling for the removal of Joe Ross and Kevin Oscar from the board, and another – from Mr Ross and other directors – calling for the appointment of a special administrator.

On 21 May, Mr Ross told National Indigenous Times: "We have called for ORIC to step in immediately because we are concerned about the future of the organisation," and stressed that BDAC was solvent.

In response, ORIC conducted a review of BDAC's situation.

In correspondence seen by the National Indigenous Times, Kevin Vu, the delegate of the Registrar of Aboriginal and Torres Strait Islander Corporations, confirmed ORIC's decision not to proceed with special administration.

"A number of factors must be taken into account when determining whether special administration is the most appropriate course of regulatory intervention. Even if grounds for special administration are established, it does not automatically mean this power will be exercised," Mr Vu wrote.

He noted that only five of the ten registered directors supported the resolution to request special administration, falling short of the required majority.

"This does not meet the requirements of subsection 487-5(h) of the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (CATSI Act), which requires a majority of the corporation's directors to make the request in writing. This would require six BDAC directors to sign the request," Mr Vu wrote.

At the time of Mr Vu's letter, BDAC had not yet lodged its general report and audited financial statements for the year ending 30 June 2023.

Mr Vu appeared to emphasise the seriousness of this omission, noting: "Failure to lodge annual reports is an offence. The maximum penalty for each report not lodged is 25 penalty units or imprisonment for six months, or both for each report not lodged."

However, he also clarified that this alone did not justify special administration, encouraging the directors to rectify the matter promptly.

Despite the petition being signed by a number of members, ORIC appeared to find procedural issues in how the directors addressed it. Mr Vu noted: "The minutes of the directors' meeting held on 20 May 2024 does not record any resolution passed by the directors with respect to the member petition, nor is there evidence the directors agreed to hold the AGM in August 2024."

"ORIC's focus is to support Indigenous member-controlled corporations to resolve problems themselves. This ensures any decisions or regulatory action that may be taken are not compromised," he wrote.

Asked about ORIC's decision not to appoint a special administrator, and the petition from members, Mr Ross told National Indigenous Times: "…the letter from ORIC denying appointment of a Special Administrator hasn't been tabled or considered by the BDAC board… so it's pre-emptive for myself to comment on behalf of BDAC or even personally".

The upcoming Annual General Meeting in August 2024 is expected to be an important meeting for BDAC as it deals with what appears to be significant community concern and moves to elect a new board, and potentially set a new direction for the corporation.