We are aware of recent comments posted on FB regarding the Q & A from our recent 39th Annual Meeting of Shareholders. We did promise answers to your questions and not taking Celebration into account that took one week from our timeline as we allowed staff to enjoy Celebration. We do plan on answering the Shareholders questions as thoroughly as possible and we felt that the most asked question needed to be addressed and that is regarding the 7(i) monies that are received from Sealaska. As you will recall Kootznoowoo sent out a “Bear Facts” newsletter in December 2011 and the issue of “How 7(i) and 7(j) work was a topic covered.
Some excerpts are:
“Congress provided that a village corporation can either distribute OR invest these 7(i) proceeds…the purpose of ANCSA was to provide for settlement and economic development to benefit future generations. The tax code does not allow the village corporations to pass through 7(i) funds automatically without tax ramifications to shareholders….good business judgment requires the Board of Directors to consider several factors including investment opportunities currently available to Kootznoowoo prior to declaring any further distribution of the 7(i)/7(j) funds.
Further information regarding this law passed by Congress can be found at the following link for further information: http://www.law.cornell.edu/uscode/text/43/1608
The board does set “distribution policies” and the one being referenced at the annual meeting dates back to 1997. Since that time, the board has adopted a new distribution policy which is based on how well the corporation is doing financially at which time normally in December, a “Christmas Distribution” is considered.
We hope this clears up any questions/concerns regarding how 7(i)/7(j) monies work and again we invite you to take a look at the law passed by Congress as the link listed.