Descendant Enrollment FAQs
WHO WOULD BE ELIGIBLE TO RECEIVE DESCENDANT STOCK?
To qualify and apply for descendant stock, an individual would have to have a direct lineal relative who was an original Shareholder of Huna Totem Corporation, would have to have been born after December 18, 1971, have reached the age of 18, and have not received descendant shares from another village or urban corporation.
WHAT IS A LINEAL DESCENDANT?
A lineal descendant relationship to an original Shareholder is defined as a child, grandchild, or great-grandchild. Collateral descendants, such as siblings, nieces, and nephews, are not considered lineal descendants.
HOW WOULD HUNA TOTEM VERIFY LINEAL DESCENDANCY?
Eligible descendants would be required to submit birth certificates that verify the parent-child relationship back to the original Shareholder. For example, if the original Shareholder was your grandparent, you would have to provide your birth certificate, which lists your parent, and your parent’s birth certificate that verifies your grandparent astheoriginal Shareholder.
WHAT TYPE OF STOCK WOULD DESCENDANTS RECEIVE?
Descendants may apply for 100 shares of “Class D voting stock”, which are considered life estate stock. Life-estate stock automatically returns to the Corporation upon the owner’s death without compensation. These shares may then be reissued to another descendant in the future but cannot be gifted or inherited.
WOULD ADOPTED CHILDREN BE ELIGIBLE FOR DESCENDANT SHARES?
Descendants who were legally adopted before reaching the age of majority and could trace their lineal descent to an original Shareholder would be eligible for Class D stock, provided they were born after December 18, 1971, and have reached the age of 18.
WOULD DESCENDANTS BE ELIGIBLE FOR CORPORATE DIVIDENDS?
Yes, corporate dividends from operations would be paid to all Shareholders as defined by the adopted Annual Dividend Policy.
WOULD CORPORATE DIVIDENDS BE DILUTED BY OPENING ENROLLMENT TO DESCENDANTS?
The Board and Management remain committed to their goal of providing predictable and steadily increasing dividends. The introduction of Class D shares would increase the total number of corporate shares. Therefore, as funds are distributed across a greater number of outstanding shares and remain tied to the f inancial health of the Corporation, the pershare dividend could initially decrease.
WHAT WOULD BE THE ELIGIBLE AGE FOR A DESCENDANT TO ENROLL?
Eligible descendants would be able to enroll any time after reaching the age of 18.
WOULD THERE BE A BLOOD QUANTUM REQUIREMENT TO BE ELIGIBLE FOR DESCENDANT STOCK?
No. Any descendant who could verify their lineage to an original Shareholder, was born after December 18, 1971, and has reached the age of 18 would be eligible to enroll for Class D stock.
WOULD LEFTOUTS QUALIFY FOR DESCENDANT ENROLLMENT?
“Leftouts” would not qualify for Class D stock. The Alaska Native Claims Settlement Act (ANCSA)defines“Leftout”asanindividual who was born before December 18, 1971, was eligible to enroll under ANCSA, but did not. Eligible shareholder rolls were fixed bytheBureauof Indian Affairs (BIA) during a finite enrollment period in the 1970s. Opening the BIA shareholder rolls to address inclusion of Leftouts would require an act of Congress to amend ANCSA.
Alternatively, a corporation could establish a new class of shares for Leftouts who meet all ANCSA criteria, but who missed enrolling at the BIA. This would require a separate corporate resolution for HTC.
WOULD I BE ELIGIBLE TO ENROLL FOR DESCENDANT STOCK IF I OWN HUNA TOTEM ORIGINAL CLASS A SHARES I RECEIVED THROUGH GIFTING OR INHERITANCE?
If you were a direct descendant of an original Shareholder, born after December 18, 1971, and have reached the age of 18, you would be eligible to enroll for 100 Class D life-estate shares, regardless of whether you received Class A shares through gifting or inheritance.
IF I HAVE CLASS A STOCK IN ANOTHER VILLAGE CORPORATION, COULD I ENROLL FOR HUNA TOTEM DESCENDANT STOCK?
If you have received Class A original shares from another village or urban corporation through gifting or inheritance, you could enroll for Huna Totem Class D stock, assuming you meet the other eligibility requirements.
IF I HAVE DESCENDANT STOCK IN ANOTHER VILLAGE CORPORATION, COULD I ENROLL FOR HUNA TOTEM DESCENDANT STOCK?
If you have received descendant shares from another Alaska Native village or urban corporation, you would not be able to enroll for Huna Totem Corporation Class D stock.
IF I HAVE CLASS D DESCENDANT STOCK IN A REGIONAL CORPORATION, LIKE SEALASKA, COULD I ENROLL FOR HUNA TOTEM DESCENDANT STOCK?
Yes. An eligible descendant could enroll in one regional corporation and one village corporation. Sealaska is an Alaska Native regional corporation and Huna Totem Corporation is an Alaska Native village corporation.
COULD I UN-ENROLL FROM A DIFFERENT VILLAGE CORPORATION AND ENROLL AS A DESCENDANT WITH HUNA TOTEM?
No. Upon enrollment in a village corporation under ANCSA regulations, your enrollment status is permanent.
WHY COULDN’T DESCENDANTS BE ISSUED CLASS A ORIGINAL SHARES?
Alaska Native village corporations, including Huna Totem Corporation, were given two years from the date the Alaska Native Claims Settlement Act (ANCSA) was signed into law (1971) to enroll original Shareholders. The 1991 Amendments to ANCSA expanded the ability of corporations to broaden shareholder eligibility, allowing for different classes of stock. An initiative to expand Class A shares, specifically, would require an act of Congress and a shareholder vote to amend the articles of incorporation and remove those restrictions.
WILL CLASS D SHARES HAVE VOTING RIGHTS?
Yes. Class D shares will give enrolled descendants voting privileges in the Corporation.
WHAT IS THE DIFFERENCE BETWEEN DISTRIBUTIONS FROM THE SHAREHOLDERS SETTLEMENT TRUST AND DIVIDENDS FROM CORPORATE/OPERATIONS?
Huna Totem Corporation (Corporation) and the Shareholders Settlement Trust (Trust) are separate legal entities and function accordingly. Current Shareholders hold an identical number of Class A shares/units in both the Corporation and the Trust.
The Trust is managed in accordance with a legal Trust which is closely monitored by federal and state laws. These regulations dictate how the funds are invested and distributed. Trust distributions are calculated on 2% of the rolling 5-year average of the market value of the Trust. These distributions are paid in three equal installments throughout the year: March, August, and November.
The Corporate Dividend Policy reflects earnings from direct operations in tourism and government contracting, and includes 7(j) revenues. Corporate dividends are calculated based on 25% of the 3-year average of the Corporation’s annual net income (earnings after all expenses are accounted for) and are paid once each year. Descendants would be eligible to receive corporate dividends through their Class D shares. Any descendants holding Class A shares through gifting or inheritance would also receive Trust distributions on a per unit basis as per the Trust Policy.
WOULD DESCENDANTS BE ELIGIBLE FOR SHAREHOLDERS SETTLEMENT TRUST DISTRIBUTIONS?
Class D shares would not be eligible for Shareholders Settlement Trust (Trust) distributions. However, descendants who own Class A shares would receive Trust distributions through any Class A shares they may have received through gifting or inheritance. Huna Totem Corporation and the Trust are separate legal entities and function accordingly. The Trust is managed in accordance with a legal Trust which is closely monitored by federal and state laws. These regulations dictate how the funds are invested and distributed.
WHY WOULD DESCENDANT STOCK NOT BE ELIGIBLE FOR THE SETTLEMENT TRUST DISTRIBUTIONS?
Descendant stock would not be eligible for distributions from the Shareholders Settlement Trust, based on the Trust Policy and any change would need to be considered at the next 10year review. The last review of the Trust was conducted in 2019, and the next 10-year review is scheduled for completion in 2029. The inclusion of descendant stock in the Trust could be considered at that time.
To qualify and apply for descendant stock, an individual would have to have a direct lineal relative who was an original Shareholder of Huna Totem Corporation, would have to have been born after December 18, 1971, have reached the age of 18, and have not received descendant shares from another village or urban corporation.
WHAT IS A LINEAL DESCENDANT?
A lineal descendant relationship to an original Shareholder is defined as a child, grandchild, or great-grandchild. Collateral descendants, such as siblings, nieces, and nephews, are not considered lineal descendants.
HOW WOULD HUNA TOTEM VERIFY LINEAL DESCENDANCY?
Eligible descendants would be required to submit birth certificates that verify the parent-child relationship back to the original Shareholder. For example, if the original Shareholder was your grandparent, you would have to provide your birth certificate, which lists your parent, and your parent’s birth certificate that verifies your grandparent astheoriginal Shareholder.
WHAT TYPE OF STOCK WOULD DESCENDANTS RECEIVE?
Descendants may apply for 100 shares of “Class D voting stock”, which are considered life estate stock. Life-estate stock automatically returns to the Corporation upon the owner’s death without compensation. These shares may then be reissued to another descendant in the future but cannot be gifted or inherited.
WOULD ADOPTED CHILDREN BE ELIGIBLE FOR DESCENDANT SHARES?
Descendants who were legally adopted before reaching the age of majority and could trace their lineal descent to an original Shareholder would be eligible for Class D stock, provided they were born after December 18, 1971, and have reached the age of 18.
WOULD DESCENDANTS BE ELIGIBLE FOR CORPORATE DIVIDENDS?
Yes, corporate dividends from operations would be paid to all Shareholders as defined by the adopted Annual Dividend Policy.
WOULD CORPORATE DIVIDENDS BE DILUTED BY OPENING ENROLLMENT TO DESCENDANTS?
The Board and Management remain committed to their goal of providing predictable and steadily increasing dividends. The introduction of Class D shares would increase the total number of corporate shares. Therefore, as funds are distributed across a greater number of outstanding shares and remain tied to the f inancial health of the Corporation, the pershare dividend could initially decrease.
WHAT WOULD BE THE ELIGIBLE AGE FOR A DESCENDANT TO ENROLL?
Eligible descendants would be able to enroll any time after reaching the age of 18.
WOULD THERE BE A BLOOD QUANTUM REQUIREMENT TO BE ELIGIBLE FOR DESCENDANT STOCK?
No. Any descendant who could verify their lineage to an original Shareholder, was born after December 18, 1971, and has reached the age of 18 would be eligible to enroll for Class D stock.
WOULD LEFTOUTS QUALIFY FOR DESCENDANT ENROLLMENT?
“Leftouts” would not qualify for Class D stock. The Alaska Native Claims Settlement Act (ANCSA)defines“Leftout”asanindividual who was born before December 18, 1971, was eligible to enroll under ANCSA, but did not. Eligible shareholder rolls were fixed bytheBureauof Indian Affairs (BIA) during a finite enrollment period in the 1970s. Opening the BIA shareholder rolls to address inclusion of Leftouts would require an act of Congress to amend ANCSA.
Alternatively, a corporation could establish a new class of shares for Leftouts who meet all ANCSA criteria, but who missed enrolling at the BIA. This would require a separate corporate resolution for HTC.
WOULD I BE ELIGIBLE TO ENROLL FOR DESCENDANT STOCK IF I OWN HUNA TOTEM ORIGINAL CLASS A SHARES I RECEIVED THROUGH GIFTING OR INHERITANCE?
If you were a direct descendant of an original Shareholder, born after December 18, 1971, and have reached the age of 18, you would be eligible to enroll for 100 Class D life-estate shares, regardless of whether you received Class A shares through gifting or inheritance.
IF I HAVE CLASS A STOCK IN ANOTHER VILLAGE CORPORATION, COULD I ENROLL FOR HUNA TOTEM DESCENDANT STOCK?
If you have received Class A original shares from another village or urban corporation through gifting or inheritance, you could enroll for Huna Totem Class D stock, assuming you meet the other eligibility requirements.
IF I HAVE DESCENDANT STOCK IN ANOTHER VILLAGE CORPORATION, COULD I ENROLL FOR HUNA TOTEM DESCENDANT STOCK?
If you have received descendant shares from another Alaska Native village or urban corporation, you would not be able to enroll for Huna Totem Corporation Class D stock.
IF I HAVE CLASS D DESCENDANT STOCK IN A REGIONAL CORPORATION, LIKE SEALASKA, COULD I ENROLL FOR HUNA TOTEM DESCENDANT STOCK?
Yes. An eligible descendant could enroll in one regional corporation and one village corporation. Sealaska is an Alaska Native regional corporation and Huna Totem Corporation is an Alaska Native village corporation.
COULD I UN-ENROLL FROM A DIFFERENT VILLAGE CORPORATION AND ENROLL AS A DESCENDANT WITH HUNA TOTEM?
No. Upon enrollment in a village corporation under ANCSA regulations, your enrollment status is permanent.
WHY COULDN’T DESCENDANTS BE ISSUED CLASS A ORIGINAL SHARES?
Alaska Native village corporations, including Huna Totem Corporation, were given two years from the date the Alaska Native Claims Settlement Act (ANCSA) was signed into law (1971) to enroll original Shareholders. The 1991 Amendments to ANCSA expanded the ability of corporations to broaden shareholder eligibility, allowing for different classes of stock. An initiative to expand Class A shares, specifically, would require an act of Congress and a shareholder vote to amend the articles of incorporation and remove those restrictions.
WILL CLASS D SHARES HAVE VOTING RIGHTS?
Yes. Class D shares will give enrolled descendants voting privileges in the Corporation.
WHAT IS THE DIFFERENCE BETWEEN DISTRIBUTIONS FROM THE SHAREHOLDERS SETTLEMENT TRUST AND DIVIDENDS FROM CORPORATE/OPERATIONS?
Huna Totem Corporation (Corporation) and the Shareholders Settlement Trust (Trust) are separate legal entities and function accordingly. Current Shareholders hold an identical number of Class A shares/units in both the Corporation and the Trust.
The Trust is managed in accordance with a legal Trust which is closely monitored by federal and state laws. These regulations dictate how the funds are invested and distributed. Trust distributions are calculated on 2% of the rolling 5-year average of the market value of the Trust. These distributions are paid in three equal installments throughout the year: March, August, and November.
The Corporate Dividend Policy reflects earnings from direct operations in tourism and government contracting, and includes 7(j) revenues. Corporate dividends are calculated based on 25% of the 3-year average of the Corporation’s annual net income (earnings after all expenses are accounted for) and are paid once each year. Descendants would be eligible to receive corporate dividends through their Class D shares. Any descendants holding Class A shares through gifting or inheritance would also receive Trust distributions on a per unit basis as per the Trust Policy.
WOULD DESCENDANTS BE ELIGIBLE FOR SHAREHOLDERS SETTLEMENT TRUST DISTRIBUTIONS?
Class D shares would not be eligible for Shareholders Settlement Trust (Trust) distributions. However, descendants who own Class A shares would receive Trust distributions through any Class A shares they may have received through gifting or inheritance. Huna Totem Corporation and the Trust are separate legal entities and function accordingly. The Trust is managed in accordance with a legal Trust which is closely monitored by federal and state laws. These regulations dictate how the funds are invested and distributed.
WHY WOULD DESCENDANT STOCK NOT BE ELIGIBLE FOR THE SETTLEMENT TRUST DISTRIBUTIONS?
Descendant stock would not be eligible for distributions from the Shareholders Settlement Trust, based on the Trust Policy and any change would need to be considered at the next 10year review. The last review of the Trust was conducted in 2019, and the next 10-year review is scheduled for completion in 2029. The inclusion of descendant stock in the Trust could be considered at that time.