Corporate Structures

SECTION 6: CORPORATE STRUCTURES 

6.(1) The following bodies shall be responsible for the management of the compensation and benefits received by the Inuvialuit pursuant to this Agreement: 

(a) the Inuvialuit Regional Corporation, a corporation without share capital, to receive initially the Inuvialuit lands and financial compensation for transfer, in respect of lands, to the Inuvialuit Land Corporation and, in respect of financial compensation, to the Inuvialuit Development Corporation and the Inuvialuit Investment Corporation; also, to administer Inuvialuit lands through its division, the Inuvialuit Land Administration, and to take responsibility for matters related to the supervision, management and administration of such lands, and to hold 100% of the voting common shares in each of the development, investment and land corporations; As amended January 15, 1987 

(b) one Inuvialuit community corporation, without share capital, for each community, together to control the Inuvialuit Regional Corporation; As amended January 15, 1987 

(c) the Inuvialuit Land Corporation, a corporation to own the lands received in the Settlement; As amended January 15, 1987 

(d) the Inuvialuit Development Corporation, a corporation to receive a portion of the financial compensation and to carry on business either directly or through ownership of shares in, or participation in ventures with, other businesses; As amended January 15, 1987 

(e) the Inuvialuit Investment Corporation, a corporation to receive a portion of the financial compensation and to invest in portfolio securities of whatsoever nature; and As amended January 15, 1987 

(f) the Inuvialuit Trust, owning 100% of the non-voting preferred shares of the Inuvialuit Land Corporation, Inuvialuit Development Corporation and Inuvialuit Investment Corporation, of which the capital and income beneficiaries would be the Inuvialuit Regional Corporation and the eligible individual Inuvialuit beneficiaries holding trust unit certificates. As amended January 15, 1987 

6.(2) Subject to subsection (1), the internal structures and the powers and responsibilities of the bodies described in that subsection shall be determined by the Inuvialuit. 

6.(3) The rule against perpetuities shall not apply to the Inuvialuit Trust. 

6.(4) The following principles shall apply to the bodies described in subsection (1): 

(a) the Inuvialuit enrolled in the Inuvialuit Land Rights Settlement shall share equally in the benefits received by the various Inuvialuit corporations and distributed through the Inuvialuit Trust; therefore, each eligible Inuvialuk, upon attaining eighteen (18) years of age, shall be entitled to enrol as a beneficiary and, upon enrolment, to receive a life interest only in the same number of trust units, which units shall be non-transferable, in the Inuvialuit Trust. Any profits derived from any development of Inuvialuit lands and distributed through the Inuvialuit Trust shall be shared equally by all enrolled Inuvialuit, but each community corporation shall have control over any development activity approved by the Inuvialuit Land Administration or the Inuvialuit Regional Corporation in respect of the block of land selected near that community pursuant to paragraph 7(1)(a); As amended January 15, 1987 and August 11, 1988 

(b) no tax shall be levied by federal, territorial, provincial or municipal governments in respect of any transactions occurring from time to time whereby shares or interests are allotted and issued by the Inuvialuit corporations or are received by any of the Inuvialuit who became enrolled under the Settlement from time to time, whether they are received directly from any of the Inuvialuit corporations or by a trustee acting on behalf of such Inuvialuit; 

(c) control of the Inuvialuit corporations shall be vested in the Inuvialuit beneficiaries through the Inuvialuit Regional Corporation and their community corporations. Control of each community corporations shall be vested in the Inuvialuit resident in that community; 

(d) restrictions shall be placed by the Inuvialuit Regional Corporation from time to time on any financial distributions from the Inuvialuit corporations to encourage the preservation of the financial compensation for the benefit of future generations of Inuvialuit. As amended August 11, 1988 

6.(5) The financial compensation received by the Inuvialuit Regional Corporation on behalf of the Inuvialuit pursuant to subsection 15(2) shall, when transferred to the Inuvialuit Development Corporation and the Inuvialuit Investment Corporation, be added to the stated capital accounts maintained for the class or classes of shares of the Inuvialuit Development Corporation and the Inuvialuit Investment Corporation respectively, as received from time to time by each corporation, and shall constitute paid-up capital in respect of such class of classes of shares of the corporations for purposes of the Income Tax Act; and the adjusted cost base to the Inuvialuit Regional Corporation of such shares shall be equal to such paid up capital. 

6.(6) The Inuvialuit Investment Corporation, the Inuvialuit Development Corporation and the Inuvialuit Land Corporation shall be deemed to be Canadian Controlled Private Corporations within the meaning of paragraph 125(6)(a) of the Income Tax Act of Canada.