Prescribed Body Corporates (PBCs) play a crucial role in Native Title Governance.

What is a PBC?

If a native title claim is successful, the native title holders must nominate an Aboriginal corporation to hold or manage their native title. This is called a prescribed body corporate, or a PBC. The technically correct name is ‘Registered Native Title Body Corporates’, but they are usually just referred to as PBCs.

To nominate a PBC, the native title holders ask the Federal Court to determine that the Aboriginal corporation they nominated should be the PBC for the native title determination. Generally, the Court will require a PBC to be determined at the same time as the native title determination.

The Native Title Act 1993 (Cth) says that the Indigenous Land and Sea Corporation (ILSC) may become the default PBC. if a group cannot nominate one. While it is unlikely the Court will make a determination of native title without determining a PBC at the same time, if the ILSC becomes the default PBC, then the native title holders lose direct control of management of their native title.

Once the PBC is nominated it becomes the job of the PBC to deal with native title, not the claim group. The PBC is the contact point for people who want to do
something on the native title area.

Native title holders, members and directors all have a role in the PBC carrying out its functions. It is important that the roles and responsibilities of these people are understood. The members and directors run the operations of the PBC and have an obligation to speak to the native title holders about native title decisions.

Who are native title holders?

Native title holders are the people recognised in the native title determination as holding native title rights and interests in the native title area. If a native title holder is not a member of the PBC, they don’t have the same rights as members. For example, they cannot attend PBC meetings or vote about whether to appoint a director.

Every native title determination defines native title holders and is publicly available. 

All native title holders must be represented in the PBC through the membership rules, either directly or indirectly.

Who are the members? 

Members are native title holders who have applied to the PBC to become members and have been accepted as members. Members must comply with the rule book. The rule book includes rules about becoming a member or director of the PBC and how decisions are made.

Rule books must also contain processes to address complaints. Every PBC rule book is publicly available. 

Who are the directors? 

The directors are appointed by the members to lead the work of the PBC. Directors have a big job to do. They have a responsibility to put native title first and make decisions for the benefit of all native title holders. Directors are always horizon scouting, reviewing strategy and risk. Directors should
avoid getting involved in operational issues where possible.

Who is the Chief Executive Officer (CEO) or General Manager? 

In some circumstances, PBCs may have staff, including a CEO or General Manager. The CEO is appointed by the board to carry out the day-to-day operations of the PBC. Details of the role of a CEO or General Manager will depend on the contract of employment. 

This is general commentary only and is not legal advice. If you are unsure how this commentary may relate to you, seek legal advice.

For more information, contact us.  

A printable factsheet of roles and responsibilities is available here.