Laws: Cases and Codes : U.S. Code : Title 43 : Section 1606


   
U.S. Code as of: 01/19/04
Section 1606. Regional Corporations

    (a) Division of Alaska into twelve geographic regions; common
      heritage and common interest of region; area of region
      commensurate with operations of Native association; boundary
      disputes, arbitration
      For purposes of this chapter, the State of Alaska shall be
    divided by the Secretary within one year after December 18, 1971,
    into twelve geographic regions, with each region composed as far as
    practicable of Natives having a common heritage and sharing common
    interests. In the absence of good cause shown to the contrary, such
    regions shall approximate the areas covered by the operations of
    the following existing Native associations:
        (1) Arctic Slope Native Association (Barrow, Point Hope);
        (2) Bering Straits Association (Seward Peninsula, Unalakleet,
      Saint Lawrence Island);
        (3) Northwest Alaska Native Association (Kotzebue);
        (4) Association of Village Council Presidents (southwest coast,
      all villages in the Bethel area, including all villages on the
      Lower Yukon River and the Lower Kuskokwim River);
        (5) Tanana Chiefs' Conference (Koyukuk, Middle and Upper Yukon
      Rivers, Upper Kuskokwim, Tanana River);
        (6) Cook Inlet Association (Kenai, Tyonek, Eklutna, Iliamna);
        (7) Bristol Bay Native Association (Dillingham, Upper Alaska
      Peninsula);
        (8) Aleut League (Aleutian Islands, Pribilof Islands and that
      part of the Alaska Peninsula which is in the Aleut League);
        (9) Chugach Native Association (Cordova, Tatitlek, Port Graham,
      English Bay, Valdez, and Seward);
        (10) Tlingit-Haida Central Council (southeastern Alaska,
      including Metlakatla);
        (11) Kodiak Area Native Association (all villages on and around
      Kodiak Island); and
        (12) Copper River Native Association (Copper Center,
      Glennallen, Chitina, Mentasta).

    Any dispute over the boundaries of a region or regions shall be
    resolved by a board of arbitrators consisting of one person
    selected by each of the Native associations involved, and an
    additional one or two persons, whichever is needed to make an odd
    number of arbitrators, such additional person or persons to be
    selected by the arbitrators selected by the Native associations
    involved.
    (b) Region mergers; limitation
      The Secretary may, on request made within one year of December
    18, 1971, by representative and responsible leaders of the Native
    associations listed in subsection (a) of this section, merge two or
    more of the twelve regions: Provided, That the twelve regions may
    not be reduced to less than seven, and there may be no fewer than
    seven Regional Corporations.
    (c) Establishment of thirteenth region for nonresident Natives;
      majority vote; Regional Corporation for thirteenth region
      If a majority of all eligible Natives eighteen years of age or
    older who are not permanent residents of Alaska elect, pursuant to
    section 1604(c) of this title, to be enrolled in a thirteenth
    region for Natives who are non-residents of Alaska, the Secretary
    shall establish such a region for the benefit of the Natives who
    elected to be enrolled therein, and they may establish a Regional
    Corporation pursuant to this chapter.
    (d) Incorporation; business for profit; eligibility for benefits;
      provisions in articles for carrying out chapter
      Five incorporators within each region, named by the Native
    association in the region, shall incorporate under the laws of
    Alaska a Regional Corporation to conduct business for profit, which
    shall be eligible for the benefits of this chapter so long as it is
    organized and functions in accordance with this chapter. The
    articles of incorporation shall include provisions necessary to
    carry out the terms of this chapter.
    (e) Original articles and bylaws: approval by Secretary prior to
      filing, submission for approval; amendments to articles: approval
      by Secretary; withholding approval in event of creation of
      inequities among Native individuals or groups
      The original articles of incorporation and bylaws shall be
    approved by the Secretary before they are filed, and they shall be
    submitted for approval within eighteen months after December 18,
    1971. The articles of incorporation may not be amended during the
    Regional Corporation's first five years without the approval of the
    Secretary. The Secretary may withhold approval under this section
    if in his judgment inequities among Native individuals or groups of
    Native individuals would be created.
    (f) Board of directors; management; stockholders; provisions in
      articles or bylaws for number, term, and method of election
      The management of the Regional Corporation shall be vested in a
    board of directors, all of whom, with the exception of the initial
    board, shall be stockholders over the age of eighteen. The number,
    terms, and method of election of members of the board of directors
    shall be fixed in the articles of incorporation or bylaws of the
    Regional Corporation.
    (g) Issuance of stock
      (1) Settlement Common Stock
        (A) The Regional Corporation shall be authorized to issue such
      number of shares of Settlement Common Stock (divided into such
      classes as may be specified in the articles of incorporation to
      reflect the provisions of this chapter) as may be needed to issue
      one hundred shares of stock to each Native enrolled in the region
      pursuant to section 1604 of this title.
        (B)(i) A Regional Corporation may amend its articles of
      incorporation to authorize the issuance of additional shares of
      Settlement Common Stock to - 
          (I) Natives born after December 18, 1971, and, at the further
        option of the Corporation, descendants of Natives born after
        December 18, 1971,
          (II) Natives who were eligible for enrollment pursuant to
        section 1604 of this title but were not so enrolled, or
          (III) Natives who have attained the age of 65,

      for no consideration or for such consideration and upon such
      terms and conditions as may be specified in such amendment or in
      a resolution approved by the board of directors pursuant to
      authority expressly vested in the board by the amendment. The
      amendment to the articles of incorporation may specify which
      class of Settlement Common Stock shall be issued to the various
      groups of Natives.
        (ii) Not more than one hundred shares of Settlement Common
      Stock shall be issued to any one individual pursuant to clause
      (i).
        (iii) The amendment authorized by clause (i) may provide that
      Settlement Common Stock issued to a Native pursuant to such
      amendment (or stock issued in exchange for such Settlement Common
      Stock pursuant to subsection (h)(3) of this section or section
      1629c(d) of this title) shall be deemed canceled upon the death
      of such Native. No compensation for this cancellation shall be
      paid to the estate of the deceased Native or to any person
      holding the stock.
        (iv) Settlement Common Stock issued pursuant to clause (i)
      shall not carry rights to share in distributions made to
      shareholders pursuant to subsections (j) and (m) of this section
      unless, prior to the issuance of such stock, a majority of the
      class of existing holders of Settlement Common Stock carrying
      such rights separately approve the granting of such rights. The
      articles of incorporation of the Regional Corporation shall be
      deemed to be amended to authorize such class vote.
        (C)(i) A Regional Corporation may amend its articles of
      incorporation to authorize the issuance of additional shares of
      Settlement Common Stock as a dividend or other distribution
      (without regard to surplus of the corporation under the laws of
      the State) upon each outstanding share of Settlement Common Stock
      issued pursuant to subparagraphs (A) and (B).
        (ii) The amendment authorized by clause (i) may provide that
      shares of Settlement Common Stock issued as a dividend or other
      distribution shall constitute a separate class of stock with
      greater per share voting power than Settlement Common Stock
      issued pursuant to subparagraphs (A) and (B).
      (2) Other forms of stock
        (A) A Regional Corporation may amend its articles of
      incorporation to authorize the issuance of shares of stock other
      than Settlement Common Stock in accordance with the provisions of
      this paragraph. Such amendment may provide that - 
          (i) preemptive rights of shareholders under the laws of the
        State shall not apply to the issuance of such shares, or
          (ii) issuance of such shares shall permanently preclude the
        corporation from - 
            (I) conveying assets to a Settlement Trust, or
            (II) issuing shares of stock without adequate consideration
          as required under the laws of the State.

        (B) The amendment authorized by subparagraph (A) may provide
      that the stock to be issued shall be one or more of the following
      - 
          (i) divided into classes and series within classes, with
        preferences, limitations, and relative rights, including,
        without limitation - 
            (I) dividend rights,
            (II) voting rights, and
            (III) liquidation preferences;

          (ii) made subject to one or more of - 
            (I) the restrictions on alienation described in clauses
          (i), (ii), and (iv) of subsection (h)(1)(B) of this section,
          and
            (II) the restriction described in paragraph (1)(B)(iii);
          and

          (iii) restricted in issuance to - 
            (I) Natives who have attained the age of sixty-five;
            (II) other identifiable groups of Natives or identifiable
          groups of descendants of Natives defined in terms of general
          applicability and not in any way by reference to place of
          residence or family;
            (III) Settlement Trusts; or
            (IV) entities established for the sole benefit of Natives
          or descendants of Natives, in which the classes of
          beneficiaries are defined in terms of general applicability
          and not in any way by reference to place of residence,
          family, or position as an officer, director, or employee of a
          Native Corporation.

        (C) The amendment authorized by subparagraph (A) shall provide
      that the additional shares of stock shall be issued - 
          (i) as a dividend or other distribution (without regard to
        surplus of the corporation under the laws of the State) upon
        all outstanding shares of stock of any class or series, or
          (ii) for such consideration as may be permitted by law
        (except that this requirement may be waived with respect to
        issuance of stock to the individuals or entities described in
        subparagraph (B)(iii)).

        (D) During any period in which alienability restrictions are in
      effect, no stock whose issuance is authorized by subparagraph (A)
      shall be - 
          (i) issued to, or for the benefit of, a group of individuals
        composed only or principally of employees, officers, and
        directors of the corporation; or
          (ii) issued more than thirteen months after the date on which
        the vote of the shareholders on the amendment authorizing the
        issuance of such stock occurred if, as a result of the
        issuance, the outstanding shares of Settlement Common Stock
        will represent less than a majority of the total voting power
        of the corporation for the purpose of electing directors.
      (3) Disclosure requirements
        (A) An amendment to the articles of incorporation of a Regional
      Corporation authorized by paragraph (2) shall specify - 
          (i) the maximum number of shares of any class or series of
        stock that may be issued, and
          (ii) the maximum number of votes that may be held by such
        shares.

        (B)(i) If the board of directors of a Regional Corporation
      intends to propose an amendment pursuant to paragraph (2) which
      would authorize the issuance of classes or series of stock that,
      singly or in combination, could cause the outstanding shares of
      Settlement Common Stock to represent less than a majority of the
      total voting power of the corporation for the purposes of
      electing directors, the shareholders of such corporation shall be
      expressly so informed.
        (ii) Such information shall be transmitted to the shareholders
      in a separate disclosure statement or in another informational
      document in writing or in recorded sound form both in English and
      any Native language used by a shareholder of such corporation.
      Such statement or informational document shall be transmitted to
      the shareholders at least sixty days prior to the date on which
      such proposal is to be submitted for a vote.
        (iii) If not later than thirty days after issuance of such
      disclosure statement or informational document the board of
      directors receives a prepared concise statement setting forth
      arguments in opposition to the proposed amendment together with a
      request for distribution thereof signed by the holders of at
      least 10 per centum of the outstanding shares of Settlement
      Common Stock, the board shall either distribute such statement to
      the shareholders or provide to the requesting shareholders a list
      of all shareholder's names and addresses so that the requesting
      shareholders may distribute such statement.
      (4) Savings
        (A)(i) No shares of stock issued pursuant to paragraphs (1)(C)
      and (2) shall carry rights to share in distributions made to
      shareholders pursuant to subsections (j) and (m) of this section.
      No shares of stock issued pursuant to paragraph (1)(B) shall
      carry such rights unless authorized pursuant to paragraph
      (1)(B)(iv).
        (ii) Notwithstanding the issuance of additional shares of stock
      pursuant to paragraphs (!1) (1)(B), (1)(C), or (2), a Regional
      Corporation shall apply the ratio last computed pursuant to
      subsection (m) of this section prior to February 3, 1988, for
      purposes of distributing funds pursuant to subsections (j) and
      (m) of this section.

        (B) The issuance of additional shares of stock pursuant to
      paragraphs (!1) (1)(B), (1)(C), or (2) shall not affect the
      division and distribution of revenues pursuant to subsection (i)
      of this section.
        (C) No provision of this chapter shall limit the right of a
      Regional Corporation to take an action authorized by the laws of
      the State unless such action is inconsistent with the provisions
      of this chapter.
    (h) Settlement Common Stock
      (1) Rights and restrictions
        (A) Except as otherwise expressly provided in this chapter,
      Settlement Common Stock of a Regional Corporation shall - 
          (i) carry a right to vote in elections for the board of
        directors and on such other questions as properly may be
        presented to shareholders;
          (ii) permit the holder to receive dividends or other
        distributions from the corporation; and
          (iii) vest in the holder all rights of a shareholder in a
        business corporation organized under the laws of the State.

        (B) Except as otherwise provided in this subsection, Settlement
      Common Stock, inchoate rights thereto, and rights to dividends or
      distributions declared with respect thereto shall not be - 
          (i) sold;
          (ii) pledged;
          (iii) subjected to a lien or judgment execution;
          (iv) assigned in present or future;
          (v) treated as an asset under - 
            (I) title 11 or any successor statute,
            (II) any other insolvency or moratorium law, or
            (III) other laws generally affecting creditors' rights; or

          (vi) otherwise alienated.

        (C) Notwithstanding the restrictions set forth in subparagraph
      (B), Settlement Common Stock may be transferred to a Native or a
      descendant of a Native - 
          (i) pursuant to a court decree of separation, divorce, or
        child support;
          (ii) by a holder who is a member of a professional
        organization, association, or board that limits his or her
        ability to practice his or her profession because he or she
        holds Settlement Common Stock; or
          (iii) as an inter vivos gift from a holder to his or her
        child, grandchild, great-grandchild, niece, nephew, or (if the
        holder has reached the age of majority as defined by the laws
        of the State of Alaska) brother or sister, notwithstanding an
        adoption, relinquishment, or termination of parental rights
        that may have altered or severed the legal relationship between
        the gift donor and recipient.
      (2) Inheritance of Settlement Common Stock
        (A) Upon the death of a holder of Settlement Common Stock,
      ownership of such stock (unless canceled in accordance with
      subsection (g)(1)(B)(iii) of this section) shall be transferred
      in accordance with the lawful will of such holder or pursuant to
      applicable laws of intestate succession. If the holder fails to
      dispose of his or her stock by will and has no heirs under
      applicable laws of intestate succession, the stock shall escheat
      to the issuing Regional Corporation and be canceled.
        (B) The issuing Regional Corporation shall have the right to
      purchase at fair value Settlement Common Stock transferred
      pursuant to applicable laws of intestate succession to a person
      not a Native or a descendant of a Native after February 3, 1988,
      if - 
          (i) the corporation - 
            (I) amends its articles of incorporation to authorize such
          purchases, and
            (II) gives the person receiving such stock written notice
          of its intent to purchase within ninety days after the date
          that the corporation either determines the decedent's heirs
          in accordance with the laws of the State or receives notice
          that such heirs have been determined, whichever later occurs;
          and

          (ii) the person receiving such stock fails to transfer the
        stock pursuant to paragraph (1)(C)(iii) within sixty days after
        receiving such written notice.

        (C) Settlement Common Stock of a Regional Corporation - 
          (i) transferred by will or pursuant to applicable laws of
        intestate succession after February 3, 1988, or
          (ii) transferred by any means prior to February 3, 1988,

      to a person not a Native or a descendant of a Native shall not
      carry voting rights. If at a later date such stock is lawfully
      transferred to a Native or a descendant of a Native, voting
      rights shall be automatically restored.
      (3) Replacement Common Stock
        (A) On the date on which alienability restrictions terminate in
      accordance with the provisions of section 1629c of this title,
      all Settlement Common Stock previously issued by a Regional
      Corporation shall be deemed canceled, and shares of Replacement
      Common Stock of the appropriate class shall be issued to each
      shareholder, share for share, subject only to subparagraph (B)
      and to such restrictions consistent with this chapter as may be
      provided by the articles of incorporation of the corporation or
      in agreements between the corporation and individual
      shareholders.
        (B)(i) Replacement Common Stock issued in exchange for
      Settlement Common Stock issued subject to the restriction
      authorized by subsection (g)(1)(B)(iii) of this section shall
      bear a legend indicating that the stock will eventually be
      canceled in accordance with the requirements of that subsection.
        (ii) Prior to the termination of alienability restrictions, the
      board of directors of the corporation shall approve a resolution
      to provide that each share of Settlement Common Stock carrying
      the right to share in distributions made to shareholders pursuant
      to subsections (j) and (m) of this section shall be exchanged
      either for - 
          (I) a share of Replacement Common Stock that carries such
        right, or
          (II) a share of Replacement Common Stock that does not carry
        such right together with a separate, non-voting security that
        represents only such right.

        (iii) Replacement Common Stock issued in exchange for a class
      of Settlement Common Stock carrying greater per share voting
      power than Settlement Common Stock issued pursuant to subsections
      (g)(1)(A) and (g)(1)(B) of this section shall carry such voting
      power and be subject to such other terms as may be provided in
      the amendment to the articles of incorporation authorizing the
      issuance of such class of Settlement Common Stock.
        (C) The articles of incorporation of the Regional Corporation
      shall be deemed amended to authorize the issuance of Replacement
      Common Stock and the security described in subparagraph
      (B)(ii)(II).
        (D) Prior to the date on which alienability restrictions
      terminate, a Regional Corporation may amend its articles of
      incorporation to impose upon Replacement Common Stock one or more
      of the following - 
          (i) a restriction denying voting rights to any holder of
        Replacement Common Stock who is not a Native or a descendant of
        a Native;
          (ii) a restriction granting the Regional Corporation, or the
        Regional Corporation and members of the shareholder's immediate
        family who are Natives or descendants of Natives, the first
        right to purchase, on reasonable terms, the Replacement Common
        Stock of the shareholder prior to the sale or transfer of such
        stock (other than a transfer by will or intestate succession)
        to any other party, including a transfer in satisfaction of a
        lien, writ of attachment, judgment execution, pledge, or other
        encumbrance; and
          (iii) any other term, restriction, limitation, or provision
        authorized by the laws of the State.

        (E) Replacement Common Stock shall not be subjected to a lien
      or judgment execution based upon any asserted or unasserted legal
      obligation of the original recipient arising prior to the
      issuance of such stock.
      (4) Purchase of settlement common stock of Cook Inlet Region
        (A) As used in this paragraph, the term "Cook Inlet Regional
      Corporation" means Cook Inlet Region, Incorporated.
        (B) The Cook Inlet Regional Corporation may, by an amendment to
      its articles of incorporation made in accordance with the voting
      standards under section 1629b(d)(1) of this title, purchase
      Settlement Common Stock of the Cook Inlet Regional Corporation
      and all rights associated with the stock from the shareholders of
      Cook Inlet Regional Corporation in accordance with any provisions
      included in the amendment that relate to the terms, procedures,
      number of offers to purchase, and timing of offers to purchase.
        (C) Subject to subparagraph (D), and notwithstanding paragraph
      (1)(B), the shareholders of Cook Inlet Regional Corporation may,
      in accordance with an amendment made pursuant to subparagraph
      (B), sell the Settlement Common Stock of the Cook Inlet Regional
      Corporation to itself.
        (D) No sale or purchase may be made pursuant to this paragraph
      without the prior approval of the board of directors of Cook
      Inlet Regional Corporation. Except as provided in subparagraph
      (E), each sale and purchase made under this paragraph shall be
      made pursuant to an offer made on the same terms to all holders
      of Settlement Common Stock of the Cook Inlet Regional
      Corporation.
        (E) To recognize the different rights that accrue to any class
      or series of shares of Settlement Common Stock owned by
      stockholders who are not residents of a Native village (referred
      to in this paragraph as "non-village shares"), an amendment made
      pursuant to subparagraph (B) shall authorize the board of
      directors (at the option of the board) to offer to purchase - 
          (i) the non-village shares, including the right to share in
        distributions made to shareholders pursuant to subsections (j)
        and (m) of this section (referred to in this paragraph as
        "nonresident distribution rights"), at a price that includes a
        premium, in addition to the amount that is offered for the
        purchase of other village shares of Settlement Common Stock of
        the Cook Inlet Regional Corporation, that reflects the value of
        the nonresident distribution rights; or
          (ii) non-village shares without the nonresident distribution
        rights associated with the shares.

        (F) Any shareholder who accepts an offer made by the board of
      directors pursuant to subparagraph (E)(ii) shall receive, with
      respect to each non-village share sold by the shareholder to the
      Cook Inlet Regional Corporation - 
          (i) the consideration for a share of Settlement Common Stock
        offered to shareholders of village shares; and
          (ii) a security for only the nonresident rights that attach
        to such share that does not have attached voting rights
        (referred to in this paragraph as a "non-voting security").

        (G) An amendment made pursuant to subparagraph (B) shall
      authorize the issuance of a non-voting security that - 
          (i) shall, for purposes of subsections (j) and (m) of this
        section, be treated as a non-village share with respect to - 
            (I) computing distributions under such subsections; and
            (II) entitling the holder of the share to the proportional
          share of the distributions made under such subsections;

          (ii) may be sold to Cook Inlet Region, Inc.; and
          (iii) shall otherwise be subject to the restrictions under
        paragraph (1)(B).

        (H) Any shares of Settlement Common Stock purchased pursuant to
      this paragraph shall be canceled on the conditions that - 
          (i) non-village shares with the nonresident rights that
        attach to such shares that are purchased pursuant to this
        paragraph shall be considered to be - 
            (I) outstanding shares; and
            (II) for the purposes of subsection (m) of this section,
          shares of stock registered on the books of the Cook Inlet
          Regional Corporation in the names of nonresidents of
          villages;

          (ii) any amount of funds that would be distributable with
        respect to non-village shares or non-voting securities pursuant
        to subsection (j) or (m) of this section shall be distributed
        by Cook Inlet Regional Corporation to itself; and
          (iii) village shares that are purchased pursuant to this
        paragraph shall be considered to be - 
            (I) outstanding shares, and
            (II) for the purposes of subsection (k) of this section
          shares of stock registered on the books of the Cook Inlet
          Regional Corporation in the names of the residents of
          villages.

        (I) Any offer to purchase Settlement Common Stock made pursuant
      to this paragraph shall exclude from the offer - 
          (i) any share of Settlement Common Stock held, at the time
        the offer is made, by an officer (including a member of the
        board of directors) of Cook Inlet Regional Corporation or a
        member of the immediate family of the officer; and
          (ii) any share of Settlement Common Stock held by any
        custodian, guardian, trustee, or attorney representing a
        shareholder of Cook Inlet Regional Corporation in fact or law,
        or any other similar person, entity, or representative.

        (J)(i) The board of directors of Cook Inlet Regional
      Corporation, in determining the terms of an offer to purchase
      made under this paragraph, including the amount of any premium
      paid with respect to a non-village share, may rely upon the good
      faith opinion of a recognized firm of investment bankers or
      valuation experts.
        (ii) Neither Cook Inlet Regional Corporation nor a member of
      the board of directors or officers of Cook Inlet Regional
      Corporation shall be liable for damages resulting from terms made
      in an offer made in connection with any purchase of Settlement
      Common Stock if the offer was made - 
          (I) in good faith;
          (II) in reliance on a determination made pursuant to clause
        (i); and
          (III) otherwise in accordance with this paragraph.

        (K) The consideration given for the purchase of Settlement
      Common Stock made pursuant to an offer to purchase that provides
      for such consideration may be in the form of cash, securities, or
      a combination of cash and securities, as determined by the board
      of directors of Cook Inlet Regional Corporation, in a manner
      consistent with an amendment made pursuant to subparagraph (B).
        (L) Sale of Settlement Common Stock in accordance with this
      paragraph shall not diminish a shareholder's status as an Alaska
      Native or descendant of a Native for the purpose of qualifying
      for those programs, benefits and services or other rights or
      privileges set out for the benefit of Alaska Natives and Native
      Americans. Proceeds from the sale of Settlement Common Stock
      shall not be excluded in determining eligibility for any
      needs-based programs that may be provided by Federal, State or
      local agencies.
    (i) Certain natural resource revenues; distribution among twelve
      Regional Corporations; computation of amount; subsection
      inapplicable to thirteenth Regional Corporation; exclusion from
      revenues
      (1)(A) Except as provided by subparagraph (B), 70 percent of all
    revenues received by each Regional Corporation from the timber
    resources and subsurface estate patented to it pursuant to this
    chapter shall be divided annually by the Regional Corporation among
    all twelve Regional Corporations organized pursuant to this section
    according to the number of Natives enrolled in each region pursuant
    to section 1604 of this title. The provisions of this subsection
    shall not apply to the thirteenth Regional Corporation if organized
    pursuant to subsection (c) hereof.
      (B) In the case of the sale, disposition, or other use of common
    varieties of sand, gravel, stone, pumice, peat, clay, or cinder
    resources made during a fiscal year ending after October 31, 1998,
    the revenues received by a Regional Corporation shall not be
    subject to division under subparagraph (A). Nothing in this
    subparagraph is intended to or shall be construed to alter the
    ownership of such sand, gravel, stone, pumice, peat, clay, or
    cinder resources.
      (2) For purposes of this subsection, the term "revenues" does not
    include any benefit received or realized for the use of losses
    incurred or credits earned by a Regional Corporation.
    (j) Corporate funds and other net income, distribution among:
      stockholders of Regional Corporations; Village Corporations and
      nonresident stockholders; and stockholders of thirteenth Regional
      Corporation
      During the five years following December 18, 1971, not less than
    10% of all corporate funds received by each of the twelve Regional
    Corporations under section 1605 of this title (Alaska Native Fund),
    and under subsection (i) of this section (revenues from the timber
    resources and subsurface estate patented to it pursuant to this
    chapter), and all other net income, shall be distributed among the
    stockholders of the twelve Regional Corporations. Not less than 45%
    of funds from such sources during the first five-year period, and
    50% thereafter, shall be distributed among the Village Corporations
    in the region and the class of stockholders who are not residents
    of those villages, as provided in subsection (!2) to it. In the
    case of the thirteenth Regional Corporation, if organized, not less
    than 50% of all corporate funds received under section 1605 of this
    title shall be distributed to the stockholders.

    (k) Distributions among Village Corporations; computation of amount
      Funds distributed among the Village Corporations shall be divided
    among them according to the ratio that the number of shares of
    stock registered on the books of the Regional Corporation in the
    names of residents of each village bears to the number of shares of
    stock registered in the names of residents in all villages.
    (l) Distributions to Village Corporations; village plan:
      withholding funds until submission of plan for use of money;
      joint ventures and joint financing of projects; disagreements,
      arbitration of issues as provided in articles of Regional
      Corporation
      Funds distributed to a Village Corporation may be withheld until
    the village has submitted a plan for the use of the money that is
    satisfactory to the Regional Corporation. The Regional Corporation
    may require a village plan to provide for joint ventures with other
    villages, and for joint financing of projects undertaken by the
    Regional Corporation that will benefit the region generally. In the
    event of disagreement over the provisions of the plan, the issues
    in disagreement shall be submitted to arbitration, as shall be
    provided for in the articles of incorporation of the Regional
    Corporation.
    (m) Distributions among Village Corporations in a region;
      computation of dividends for nonresidents of village; financing
      regional projects with equitably withheld dividends and Village
      Corporation funds
      When funds are distributed among Village Corporations in a
    region, an amount computed as follows shall be distributed as
    dividends to the class of stockholders who are not residents of
    those villages: The amount distributed as dividends shall bear the
    same ratio to the amount distributed among the Village Corporations
    that the number of shares of stock registered on the books of the
    Regional Corporation in the names of nonresidents of villages bears
    to the number of shares of stock registered in the names of village
    residents: Provided, That an equitable portion of the amount
    distributed as dividends may be withheld and combined with Village
    Corporation funds to finance projects that will benefit the region
    generally.
    (n) Projects for Village Corporations
      The Regional Corporation may undertake on behalf of one or more
    of the Village Corporations in the region any project authorized
    and financed by them.
    (o) Annual audit; place; availability of papers, things, or
      property to auditors to facilitate audits; verification of
      transactions; report to stockholders
      The accounts of the Regional Corporation shall be audited
    annually in accordance with generally accepted auditing standards
    by independent certified public accountants or independent licensed
    public accountants, certified or licensed by a regulatory authority
    of the State or the United States. The audits shall be conducted at
    the place or places where the accounts of the Regional Corporation
    are normally kept. All books, accounts, financial records, reports,
    files, and other papers, things, or property belonging to or in use
    by the Regional Corporation and necessary to facilitate the audits
    shall be available to the person or persons conducting the audits;
    and full facilities for verifying transactions with the balances or
    securities held by depositories, fiscal agent, and custodians shall
    be afforded to such person or persons. Each audit report or a fair
    and reasonably detailed summary thereof shall be transmitted to
    each stockholder.
    (p) Federal-State conflict of laws
      In the event of any conflict between the provisions of this
    section and the laws of the State of Alaska, the provisions of this
    section shall prevail.
    (q) Business management group; investment services contracts
      Two or more Regional Corporations may contract with the same
    business management group for investment services and advice
    regarding the investment of corporate funds.
    (r) Benefits for shareholders or immediate families
      The authority of a Native Corporation to provide benefits to its
    shareholders who are Natives or descendants of Natives or to its
    shareholders' immediate family members who are Natives or
    descendants of Natives to promote the health, education, or welfare
    of such shareholders or family members is expressly authorized and
    confirmed. Eligibility for such benefits need not be based on share
    ownership in the Native Corporation and such benefits may be
    provided on a basis other than pro rata based on share ownership.



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