M3: Learner Manual

4.2. Funding Body Requirements

Many corporations registered under the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (the CATSI Act) receive funding from state and territory governments and Commonwealth government agencies. The CATSI Act makes a number of improvements that are relevant to funding bodies—such as encouraging better governed and more sustainable corporations and providing for improved risk management by funding bodies and corporations.

Under the CATSI Act funding bodies and creditors are better able to protect assets through strengthened rights as an interested party. For example, corporations and creditors can use the external administration provisions of the Corporations Act:

·       voluntary administration

·       receiver and liquidator provisions

·       applications to a court to seek an order to protect assets[1]