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Aboriginal Joint Ventures: Top Ten Tips

Learn the top ten tips for successful Aboriginal joint ventures, including understanding the legal underpinning, respecting Aboriginal values, and contracting with Aboriginal businesses. Presented by Timothy J. Murphy, Chief Marketing Partner at McMillan LLP.

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Aboriginal Joint Ventures: Top Ten Tips

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  1. Aboriginal Joint Ventures: Top Ten Tips LSUC-OBA Aboriginal Economic Development Program: Developing Aboriginal Cooperatives and Consortiums, June 20, 2012 • Timothy J. Murphy • Chief Marketing Partner • tim.murphy@mcmillan.ca

  2. Top Ten Tips • Understand the Legal Underpinning: • Capacity – “persons” and “unincorporated associations” (Man. vs. Alta.) • Creating binding contracts • Band Council resolutions • No “indoor management” rule • Doing business on reserves • An agreement which permits a non-band member to use or occupy a reserve is void unless a Ministerial permit is issued. • Enforcement of Remedies • Cannot charge, attach, seize etc assets “on a reserve”

  3. Top Ten Tips – Cont’d • Economic Development is Stage 3 • Capacity Building and Planning come first • Process Matters • Leave time • Negotiations style – consultative vs. adversarial/relational • Aboriginal Values Need to be Respected • Kinds of Projects: • Socially responsible • Environmentally sustainable • Economically viable

  4. Top Ten Tips Cont’d • Long Term Considerations Matter • Seven Generation Principle • Remediation obligations • Historical grievances • The First Nation as Government and as Business • Trying to keep them separate • Government authority on reserve • Paramountcy • Contracting • Keep an eye on politics • Referendum or Council Approval?

  5. Top Ten Tips – Cont’d • True Partnership for Success • Sharing: • Authority • Investment • Responsibility • Engagement • Information • Problems (Role of Council, Chief, Elders in the Community) • Understand the Resources Available • Federal and Provincial capacity, funding, cost sharing, loan programs • Lending programs (Banks) • Participation Agreements

  6. Top Ten Tips Cont’d • Contracting with Aboriginal Businesses • Know what works – from unbundling large contracts to a First Nation GC; • Fairness in contracting (information flow) • Union halls • Bonding/security (project finance) • Domestic content requirements in FIT Contracts

  7. Top Ten Tips (Cont’d) • Aboriginal Values (Part 2) • Relationships matter • Respect for Elders and community • Collective vs. individual rights and approach • Process vs. time • Sustainability • Short term benefits and long term improvement (distributions and jobs now and training and capacity later) • Respect for jurisdiction

  8. McMillan LLP • Timothy J. Murphy • tim.murphy@mcmillan.ca

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