Why did Klahoose create a Management Corporation?
Notes taken from Development Corporation Basics – A workbook: Native Edition. West Coast series on Community Economic Development
There has been a history of First Nations from all over Canada that have received monies from the government and put the funding towards social programming to benefit the nation with moving forward. The social programming could have gone to things like: education, employment services, skills and training etc. However, there has been many cases where the “…chiefs (or council) ended up being unable to exercise little to real influence over the direction and design of programs or budgets.” The funding might not necessarily have been looking towards the future. Once that happened the pool of funds dried up and the nations were back down to zero again. One notion that was taken to fix this problem was creating a strategy that would “…improve capacity within the community to organize their own interests. To focus and manage such a strategy there has to be some kind of organization. Community based development corporations were invented by the leadership in poor communities to provide a means by which community’s economic interests could be advanced.
Klahoose created QXMC and the Board of Directors to create own source revenue to allow more freedom in our investments. The importance of autonomy within in a nation has been on the forefront of aspirations for all First Nations all across Canada – especially in B.C.
What is Corporate Management?
According to the business dictionary (.com). It is “the process of leading, administering and directing a company. Business tasks often performed by corporate management might include strategic planning, as well as managing company resources and applying them toward attaining the company’s objectives.” Corporate management is a practice done following the rules of corporate governance, which is “the framework of rules and practices by which a board of directors, ensures accountability, fairness and transparency in a company’s relationship with all its stakeholders (financiers, customers, management, employees, government and the community).”
What is a Limited Partnership?
According to Investopia.com, “A limited partnership (LP) exists when two or more partners unite to jointly conduct a business in which one or more of the partners is liable only to the extent of the money that partner has invested.
“Limited partners generally do not have any kind of management responsibility in the partnership in which they invest and are not responsible for its debt obligations. [This is why all of the LPs are managed by the QXMC Board of Directors]. For this reason, limited partners are not considered to be material participants.” However, “… each partner is required to contribute resources such as property, money, skill or labour in exchange for sharing profits and losses of the business. At least one partner is involved in making decisions regarding the day-to-day affairs of business. Though not a legal requirement, all partnerships require a partnership agreement that specifies how to make business decisions. These business decisions include how to split profits or losses, resolve conflicts and alter ownership structure, as well as how to close business if necessary.”
An example of how this works: let’s say Klahoose Forestry Limited Partnership (KFLP) contracted a logging and falling company to extract a certain amount of board feet of wood out of the Toba Valley with an agreement that would allot the company a certain amount of years to do so. The company provided the equipment, skills and labour, but the KFLP would be managing the contractors and overseeing the agreements in the contract.
With the variation of limited partnerships, it opens up more opportunities for business for QXMC because of the maneuverability within each limited partnership and what each specifies in.