A Prescribed Body Corporate (PBC), also called a Registered Native Title Body Corporate (RNTBC), is the legal entity that holds or manages native title rights and interests on behalf of native title holders after a successful determination. It is registered with ORIC and operates under the Corporations (Aboriginal and Torres Strait Islander) Act 2006.
What is a Prescribed Body Corporate (PBC)?
A Prescribed Body Corporate (PBC), also called a Registered Native Title Body Corporate (RNTBC), is the legal entity that holds or manages native title rights and interests on behalf of native title holders after a successful determination. It is registered with ORIC and operates under the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (the CATSI Act).
Every determined native title group must have a PBC. The determination itself nominates, or directs the claim group to nominate, the PBC that will hold or manage their rights. The PBC is how the group exercises its legal rights, engages with governments and developers, and manages its relationship with Country as a matter of law.
What a PBC does
The PBC is the primary legal vehicle through which the native title group:
- negotiates with proponents about activities on or near native title land
- enters into and manages ILUAs
- engages with the relevant Aboriginal party process for cultural heritage purposes
- holds and manages any assets of the group
- provides a point of contact for the government and other parties
In practical terms, a PBC that is well-governed and properly resourced can be the mechanism through which a community’s rights generate real benefit. A PBC that is poorly governed or underfunded can become a liability.
Legal obligations under the CATSI Act
PBCs have significant obligations under the CATSI Act:
- maintaining a valid constitution that complies with the Act
- holding general meetings in accordance with the constitution and the Act
- keeping financial records and having them audited
- lodging annual reports with ORIC
- acting in the interests of native title holders, not in the personal interests of directors
ORIC has powers to intervene in PBCs that are not meeting these obligations. In serious cases, a special administrator can be appointed. The consequences for the community can be significant.
Director duties
PBC directors owe legal duties to the corporation and to the native title holders it represents. Acting in good faith, exercising care and diligence, and avoiding conflicts of interest are legal obligations, not aspirational standards. Directors who do not understand their duties are exposed to personal liability.
Getting advice
David Saylor advises PBCs on governance matters, constitutions, director duties and compliance with the CATSI Act. He also advises on the resolution of internal governance disputes before they become formal proceedings.
If you are a PBC director or a native title holder with questions about how your PBC is operating, call (07) 4431 0074 or 0474 244 447 or email david@saylorlegal.com.au.