“Class C” Proposition FAQ

WHAT ARE “CLASS C” SHARES?
In 1988, ANCSA was amended to allow Alaska Native corporations to issue shares to people who met all of the requirements for Class A or Class B stock, but who were left off the BIA rolls for whatever reason (for example, some were adopted out of State and their adoptive parents didn’t enroll them).  In 1991, NANA amended its Articles of Incorporation to issue 100 shares of Class C Settlement Common Stock to each person who qualified.  The deadline to apply was December 31, 1995. 

WHY ARE WE VOTING ON CLASS C SHARES?
There was a deadline in NANA’s Articles of Incorporation to apply for Class C shares of December 31, 1995.  A small group of shareholders (10 at this point) have come forward saying they missed the deadline to apply, but they think they are otherwise eligible for Class C shares.  In past surveys, NANA shareholders have supporting removing the deadline to allow this small group to apply.  To do this, the Articles have to be amended by vote of the shareholders to remove the deadline. 

DO SHAREHOLDERS SUPPORT ISSUING MORE CLASS C SHARES?
Yes.  In the 2011 survey, NANA shareholders expressed a high level of support for issuing stock to people who qualified to enroll in 1971, but were not enrolled.  In fact, 76% of the shareholders who responded indicated they support issuing Class C shares.

WHAT HAPPENS IF THE AMENDMENT PASSES?
If the proposal passes by a vote of the shareholders, Class C shares will be reopened and NANA will be able to issue Class C shares.  In other words, the deadline to apply for Class C shares will be deleted from NANA’s Articles of Incorporation so that people will be able to apply.

WHEN CAN PEOPLE APPLY?
If the amendment passes, NANA will make enrollment applications available by mail, fax, online at www.nana.com/forms and at NANA offices in Anchorage, Kotzebue and each village in the NANA Region.

DOES A PERSON NEED TO BE ALIVE TO BE CONSIDERED?
No.  If an individual is deceased, the descendants of the individual can apply on his or her behalf.  If the deceased person is found to be eligible, then his or her heirs will received the Class C shares.

WHAT HAPPENS IF A PERSON DIES DURING HIS/HER APPLICATION-REVIEW PROCESS?
If the application is approved to receive the Class C shares, the person’s heirs will be issued the stock.

CAN CLASS C SHARES BE GIFTED OR INHERITED?
Class C shares can be gifted and inherited, just like Class A and Class B shares.  Class D shares are life estate stock and are not inheritable and cannot be gifted.

WILL NEW CLASS C SHAREHOLDERS BE ELIGIBLE TO RECEIVE STOCK FROM KIC?
No.  This amendment applies only to NANA stock and will have no effect on the individual being a shareholder in KIC.

WILL INDIVIDUALS WITH TIES TO A MERGED VILLAGE CORPORATION GET MORE SHARES, LIKE WITH CLASS D?
No.  This amendment allows for 100 shares of Class C stock to be provided to an eligible individual.

HOW DOES THIS ISSUE RELATE TO CLASS D STOCK?
Class C shares are for people who were alive on December 18, 1971 and met the eligibility requirements, but for whatever reason were not included on the BIA’s roll.  ANCSA also allows for stock to be issued to people who were born after December 18, 1971, which is NANA’s Class D stock.  In 1991, NANA shareholders voted to allow for both Class C and Class D shares.

 

EXTRA INFORMATION ON CLASSES OF NANA STOCK

There are four different classes of stock in NANA Regional Corporation, Inc.

1. Class A

NANA calls the first type Class A Settlement Common Stock.  In order to qualify for Class A stock you had to:
a. Be born before December 18, 1971,
b. Be one quarter (1/4) or more Alaska Native Blood,
c. Be a United States citizen,
d. Be a resident of a village in the NANA region, and
e. Apply for shares with the Bureau of Indian Affairs before the deadline set by the agency.

All people who qualified for Class A shares when NANA received the roll were issued 100 shares of NANA Class A stock.  They also received 100 shares of village corporation stock from the village corporation in which they enrolled.  When 10 of the 11 village corporations merged with NANA, the shareholders who held stock in the merged village corporations returned their village corporation shares and were issued an additional 100 shares of NANA stock, for a total of 200 NANA shares.  Shareholders enrolled in the Kotzebue village corporation kept their 100 shares of NANA and 100 shares of KIC.

2. Class B

NANA calls the second type of original ANCSA stock Class B Settlement Common Stock, or at-large shares.  In order to qualify for Class B stock you had to:
a. Be born before December 18, 1971,
b. Be one quarter (1/4) or more Alaska Native Blood,
c. Be a United States citizen,
d. Have ties to the region, but not be a resident of a village in the region, and
e. Apply for shares with the Bureau of Indian Affairs before the deadline set by the agency.
These shares were generally issued to people who were living outside the region at the time of enrollment but whose family was originally from the region.  Shareholders who qualify for Class B shares received 100 shares of NANA stock and are entitled to a share of the 7(i) distributions under ANCSA section 7(j).

3. Class C

In 1988, ANCSA was amended to allow corporations to issue shares to people who met all of the requirements for Class A or Class B stock as listed, but who were not enrolled for whatever reason.  In 1991, NANA amended its Articles of Incorporation to issue 100 shares of Class C Settlement Common Stock to each person who qualified to receive shares under this provision.  In its Articles of Incorporation, NANA set December 31, 1995 as the deadline to apply for Class C shares.

Class A, B, and C stock may be gifted pursuant to ANCSA, or inherited pursuant to ANCSA and the Alaska Laws of Inheritance. 

4. Class D

In 1988, Congress amended ANCSA to allow corporations to issue shares to Natives born after December 18, 1971.  In 1991, NANA’s shareholders voted to issue shares to people born after 1971 who meet the following criteria:
a. Are Native, as defined by ANCSA (1/4 or more degree of AK Native blood and a citizen of the United States),
b. Were born after December 18, 1971,
c. Is a child of either (1) a parent who was enrolled to NANA pursuant to ANCSA, or (2) a parent who was issued Class C or D shares pursuant to the requirements above, and
d. Was not issued similar stock in another regional corporation pursuant to the ANCSA section that allows stock to be issue to children born after 1971.

Class D is commonly known as “life estate stock,” and cannot be gifted or inherited.