Indigenous Land Corporation gpo box 652 Adelaide sa 5001

17. Transactions with wholly owned entity

The ILC is the ultimate parent entity in the wholly owned group comprising itself and its wholly owned subsidiaries NIPE, NCIE and Voyages.

The ILC provided grant funding to its subsidiaries as follows:

NIPE – $7,190,745 (2013: $6,857,013)

NCIE – $1,156,668 (2013: nil)

The ILC provided loan funding to its subsidiaries as follows:

NCIE – nil (2013: $ 2,208,578)

Voyages – nil (2013: $ 1,365,802)

Section 191G of the Aboriginal and Torres Strait Islander Act 2005 (the Act) allows the ILC to create subsidiaries and to fund them by way of loan or transfer. The deed of agreement between the ILC and NCIE Ltd reflects the Act and expresses that the ILC will make an annual advance of funds to cover NCIE Ltd’s expenses and underwrite any losses from NCIE Ltd either by way of loan or grant. The discretion is with the ILC as whether funding is by way of loan or grant. During the year the ILC Board resolved to forgive the loan outstanding at 1 July 2013 ($5,647,298) and fund NCIE Ltd in future by way of a grant.