Alaska revises proposal to cut deadline for ANCSA proxy investigation requests

The Alaska Division of Banking and Securities on Wednesday revised its proposed election rules for Alaska Native corporations. The rules would cut the time to request an investigation into proxy violations from 90 days after a shareholder vote to 60.

The same cut would apply when a violation could not reasonably have been discovered in time. That deadline would become 60 days from discovery instead of 90. A shareholder, director or officer harmed by an alleged violation can request an investigation, and the proposal does not change that.

The division first proposed changes on July 23, 2025, and has modified them in response to comments. It reopened public comment until 4:30 pm Dec. 18.

The rules cover only corporations with 500 or more original shareholders, under a state law enacted this year. In a May 5 letter in the legislative record, the division counted 59 corporations under its jurisdiction. About 22 had 500 or more original shareholders, seven did not and 30 were still being researched.

Today, filings may be electronic, on digital media or on paper. The proposed regulations would require electronic filing through the administrator's online portal or another approved method, unless waived on written request.

A "participant" would still exclude people who contribute $500 or less, but would now include proxyholders. A shareholder who is not a participant could urge others to vote a particular way without that counting as solicitation.

Nominees already must disclose final judgments for unethical business practices or violations of fiduciary duty or securities law within the past 10 years. The proposal adds violations of the state's ANCSA proxy and stock law.

The proposal would also repeal the current filing fee, which is $250 plus up to $25,000 based on assets. The division estimates the changes would cost private persons nothing to comply with.