Application to wind up and special administration - Aboriginal and Torres Strait Islander Corporation for Welfare Services (ICN 355)
Announcement
Special administration
Winding up
The Registrar of Aboriginal and Torres Strait Islander Corporations, Ms Tricia Stroud, has applied to the Federal Court of Australia to have the Aboriginal and Torres Strait Islander Corporation for Welfare Services (ATSICfWS) (ICN 355) wound up.
The application was made on 14 September under section 526-1 and 526-15(1)(h) of the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (CATSI Act). It was made on the grounds that the corporation has failed to lodge its required reports (s 526-5(k) of the CATSI Act) and that it was in the interest of the corporation’s members, creditors and the public (s 526-5(m) of the CATSI Act).
In making the application, the Registrar has sought an order that Jack James and Paula Smith of Rodgers Reidy (WA) Pty Ltd be appointed as joint and several liquidators of the corporation.
The proceeding has been listed for first directions on Friday, 23 October 2026.
The application follows a prolonged period of non-compliance with the corporation having not lodged its required reports since 2019. While action against corporations for failing to lodge reports was suspended for 2018 and 2019, due to COVID, the corporation continued to neglect its reporting obligations. The corporation was subsequently prosecuted in 2025 on 12 charges for failing to lodge reports for 4 years.
Despite prosecution and a $15,000 fine the corporation continued to not lodge financial reports. In March 2026 ORIC was alerted to action by the Mount Isa City Council to sell 25 of the corporation’s houses in order to recover outstanding rates. Mount Isa City Council had not received any rate payments from ATSICfWS since August 2022. This is compounded with interest on overdue rates and charges accruing daily.
Following this process the corporation, whose registered purpose is to provide rental accommodation to Aboriginal and Torres Strait Islander people, has been left with 2 properties.
The corporation is expected to receive residual funds from the council sales once outstanding rates and council expenses are paid.
Special administration
On 29 September 2026, the Registrar placed the corporation under special administration, as an interim and urgent measure.
Jack James and Paula Smith of Rodgers Reidy (WA) Pty Ltd have been appointed as joint and several special administrators until 30 October 2026, or before if orders are granted to wind up the corporation and appoint liquidators.
All directors currently registered will be vacated from office, with the special administrators taking control of the corporation.
The Registrar has taken the extraordinary steps of appointing special administrators before being granted orders to wind up the corporation to ensure the corporation’s assets are intact and available to satisfy any remaining, but not yet known, debt of the corporation. Should there be residual assets once all debts of the corporation are paid, consideration will be given on how it may be distributed to be used for future housing and support services for Indigenous peoples.
Corporations registered under the CATSI Act are Indigenous member-owned and controlled. The situation of ATSICfWS has been the result of corporation members and directors abandoning their ownership, rights and obligations concerning the corporation.
The corporation is defunct with little to no prospect of resuming operations. There is no evidence the corporation has held annual general meetings or held any director elections, which likely means all director terms have expired. Despite prosecution action against the corporation for failing to lodge its annual reports there has been no action taken by the corporation’s directors or members to remedy these serious offences.
The Registrar is of the view that to allow the corporation to benefit from any residual funds would be unjust. The Registrar is particularly mindful of the rights of creditors and ensuring any corporation assets are available to meet the corporation’s debts.
Subject to the Court granting the Registrar orders to windup the corporation Jack James and Paula Smith will cease special administration and commence liquidation and windup of the corporation.