Join Our eNews Network

search

For Shareholders

Operations and Investments

Home > For Shareholders > Benefits >

Shareholder FAQ

Frequently Asked Questions

Clear and consistent communication with our shareholders is a top priority at Sealaska. Here are answers to frequently asked shareholder questions.

Questions about distributions
When is the next distribution scheduled? How much is it?
If I enroll this year, will I be eligible to receive the next distribution?
When will I begin receiving distribution checks?
What is the shareholders' permanent fund?

Questions about descendants, Leftouts and enrollment
If I already own shares as a descendant (through gifting or inheritance) can I still enroll and receive 100 new shares?
What is the financial impact on Sealaska if I enroll?
Will my distributions continue to get smaller as more descendants enroll?
I don't turn 18 for another few years. What can I do?
What is a direct lineal descendant?
Who are Village, Urban and At-Large shareholders?
What is perpetual enrollment?

Questions about Sealaska stock and shares
How much is Sealaska stock worth?
What are some good reasons why our stock should be restricted from sale or trade?
What is life estate stock?
What are gifted shares?
What are inherited shares?
When can I sell my stock?

Questions about ANCSA
What is ANCSA?
What is Section 7(i)?
What is unique about an ANCSA Corporation?

General questions for shareholders
Does Sealaska offer medical assistance?
Does Sealaska assist with funeral expenses?
How can I replace my shareholder identification card?
What is Sealaska doing for younger shareholders?
Will the "landless" receive land?
What protections and rights do the "1991 Amendments" provide?

Questions for shareholders in business
Who can I contact for a business loan?
Is there technical assistance available to start my own business?
Does Sealaska have funds for shareholders to invest in buying limited-entry permits?

When is the next distribution scheduled? How much is it?
Distributions are usually made in the months of April and December. Distribution announcements will be made through the eNewsletter, a press release, in the Shareholder newsletter, the homepage of this website and the shareholder hotline. For the latest distribution dates and information, please visit our distributions page.

The record date is the date that Sealaska closes its shareholder register from any more changes until after a distribution is made. It occurs a few weeks prior to each distribution and confirms the shareholders of record eligible to receive a given distribution. It is critical to have your shareholder information updated with the shareholder records department before any record date.

If I enroll this year, will I be eligible to receive the next distribution?
Any eligible applicant will only receive their shares after completion and submission of the required documents, and approval by the Corporation of those documents. It is estimated it will take several weeks or more to process each application once it is received by Sealaska. Processing your application will take longer if it is not filled out completely or is missing any required information. Shares must be issued by the distribution Record Date in order for the applicant to be a “shareholder of record” with the Corporation. The Record Date is generally two weeks prior to the date of a distribution. You must be issued your shares before the Record Date of the distribution to be eligible to receive payment.

When will I begin receiving distribution checks?
You will be eligible for payment on your shares only after the shares have been properly issued by the Corporation. You must submit a completed application, which must be approved by the Corporation after a processing time that could be several weeks. You will only be eligible for distribution checks on dates after the issuance of your stock, and you must be a shareholder on the Record Date a few weeks prior to any corporate distribution.

What is the shareholders' permanent fund?
The shareholders' Permanent Fund was established to give the Corporation another source of funds to pay dividends to shareholders, separate from general business operations. It was established in 1987 by a majority vote of the shareholders, and its purpose was to manage not less than 50 percent of net operating loss or tax benefit revenues. Up to 50 percent of the fund's earnings, averaged over a five-year period and after inflation proofing, can be distributed to shareholders. Dividends from the Fund are typically paid in April and December.

If I already own shares as a descendant (through gifting or inheritance) can I still enroll and receive 100 new shares?
Yes, as long as you are qualified, you would receive 100 shares of Class D Stock after approval of a completed and valid application. These will be in addition to any original shares you already own. The original shares received through gifting or inheritance could continue to be passed on by gift or inheritance, but the Class D Stock cannot.

What is the financial impact on Sealaska if I enroll?
The financial impact of enrolling descendants on future distributions depends upon the number of eligible descendants who enroll. Having more shareholders will mean that dividends will be distributed among a larger number of individuals and may result in smaller distributions to original shareholders. However, the shares issued to descendants and Leftouts do not receive ANCSA Section 7(j) revenues. This protects a portion of the distributions of original shareholders who do receive those Section 7(j) payments.

Will my distributions continue to get smaller as more descendants enroll?
The initial enrollment of shareholder descendants will have the largest impact on the dividend distributions. The open enrollment process means that descendants will continue to enroll upon turning 18, and the shareholder base will keep growing. Available funds for dividends will therefore be distributed to an increasing number of shareholders. However, when holders of life estate shares pass on, their shares are cancelled, so, over time, some shares are added while some are cancelled. In addition, financial conditions could be such that Sealaska might be able to provide larger than historic distributions even with the addition of new shareholders. There are no guarantees of such financial performance.

I don't turn 18 for another few years. What can I do?
Make sure you meet all the other eligibility requirements. You can begin to acquire the documents and information necessary to apply as a shareholder descendant so that you are fully prepared to submit your application once you turn 18. These include a certified original birth certificate; a Certificate of Indian Blood (CIB) issued by the Bureau of Indian Affairs, Alaska Region; and the Shareholder Identification Number of the parent, grandparent or great-grandparent from whom you are a direct lineal descendant.

What is a direct lineal descendant?
A person who is the child, grandchild, great grandchild, etc. of an original Sealaska shareholder; descendants must be able to trace a direct ancestor as an original Sealaska shareholder.

Who are Village, Urban and At-Large shareholders?
Village shareholders are those enrolled in a Village Corporation and own Type A Stock.

Urban shareholders are those enrolled in an Urban Corporation (Goldbelt or Shee Atika) or those who were living in Alaska at the time of enrollment in 1971 and were not part of a Village Corporation. Urban shareholders own Type B Stock. Landless shareholders are considered Urban shareholders.

At-large shareholders are those who were living outside of Alaska at the time of enrollment in 1971, or who did not enroll with a Village or Urban Corporation. At-large shareholders own Type C Stock.

What is perpetual enrollment?
Enrollment with no closing date; the Corporation would continually enroll descendants and Leftouts who meet the eligibility requirements. In other words, there would be no enrollment closure but rather ongoing enrollment of qualified applicants.

How much is Sealaska stock worth?
There is no easy answer to this question. Your stock is different from stock like IBM or Xerox that is sold publicly at a price based on what it can be bought and sold for in the stock market. Sealaska stock cannot be bought, sold or publicly traded.

The "book value" for Sealaska stock is included in each year's annual report. For the year ending December 31, 2005, the "book value" was $142.50 per share (2005 Annual Report). The book value does not reflect the land, timber and natural resources owned by Sealaska shareholders, for which Sealaska is unable to determine the exact value due to the following reasons:

We did not pay cash for our natural resources.
We cannot (at this time) determine what the market value will be for these resources.
We cannot determine the costs for developing these resources.
We also would have to deduct future Section 7(i) distribution amounts to determine the net value of the resources (timber and minerals) to accurately value the stock price.
If we put a price on our stock, it would be based on:

Whether or not shareholders had voted to sell the stock publicly
What the value would be for future expected dividends
What the corporation's land would be worth, not including historical or subsistence lands nor lands where the value would only be speculative, such as where there might be subsurface minerals
Your stock also represents Native cultural values that cannot be measured in dollars.

What are some good reasons why our stock should be restricted from sale or trade?
Here are just a few reasons:

It is a means of keeping the ANCSA Native Corporations and the land, one of our most precious assets, in Native control. If we lose the control, it's unlikely we'll get it back.
It has good earning potential through a strong dividend stream.
It's a strong, continuing link with our land, which has supported the Native culture for hundreds of generations.

What is life estate stock?
This is a class of stock that only exists while the shareholder is alive. Life estate shares cease to exist upon the death of the shareholder. The stock will be cancelled without compensation and will no longer impact the distributions to all other shareholders. Life estate stock cannot be gifted or inherited.

What are gifted shares?
Shares that a shareholder has given to a child, grandchild, great grandchild, brother, sister, niece or nephew; if the recipient has Native blood, the shares remain voting shares.

What are inherited shares?
Original shares that have passed, either by will or by law, upon the death of the original shareholder; if the heir has Native blood, the shares remain voting shares.

When can I sell my stock?
The ANCSA amendments passed by Congress in 1988 continued the restrictions on the sale of stock indefinitely unless brought to a shareholder vote by the Board of Directors, or by a petition of 25 percent of the shareholders. Shareholders would have to vote to approve an amendment to the Articles of Incorporation to remove the restrictions on the sale of stock.

In 1993, shareholders voted to approve a "supermajority" voting standard, which would require a vote of two-thirds of all outstanding shares in order to lift current restrictions on the sale of Sealaska stock.

The Board of Directors does not plan to bring this to a vote of shareholders. Surveys show that a majority of shareholders prefer to keep their stock, believing that Sealaska is a strong link with their heritage. Shareholders want Sealaska to grow and provide benefits today and for future generations.

What is ANCSA?
ANCSA is the Alaska Native Claims Settlement Act, which Congress enacted effective December 18, 1971; amendments to ANCSA in 1987 permit Native corporations to issue shares to descendants of shareholders, to Elders, and to Leftouts. For more information, please visit our ANCSA Resources page.

What is Section 7(i)?
Section 7(i) is a provision of the Alaska Native Claims Settlement Act, which states that each of the 12 Regional Corporations in Alaska must share 70 percent of their natural resources development income with the other Regional Corporations. Annually, these revenues are pooled together and then are apportioned back to the Regional Corporations on a per capita basis. Since inception, Sealaska has paid $306.4 million into the Section 7(i) pool, the most of any Regional Corporation. Some Section 7(i) monies are passed on to shareholders through ANCSA Section 7(i) payments. See Distributions.

What is unique about an ANCSA Corporation?
ANCSA is a congressional experiment that created for-profit corporations to manage specified lands, rather than transfer settlement lands and resources to Indian tribes and create reservations.

The ANCSA Corporations are meant to be sustainable economic engines that benefit Alaska Native people, most of whom are economically distressed.

There are 13 Regional Corporations, including Sealaska, and more than 200 Village and Urban Corporations created under ANCSA.

By federal law, Sealaska is considered a "minority and economically disadvantaged business enterprise." This designation also applies to its majority owned subsidiaries, joint ventures and partnerships [43 USCA 1626 (e)].

Does Sealaska offer medical assistance?
No. For medical assistance, please visit an Indian Health Service facility or contracted facility in your area. The Sealaska Shareholder Records office is happy to assist shareholders with locating the appropriate facility. Please see health services for more information.

Does Sealaska assist with funeral expenses?
No. However, the Bureau of Indian Affairs and other organizations offer such a benefit. See Funeral and Burial Assistance for more information.

How can I replace my shareholder identification card?
If you lose or misplace your gray-and-blue pinstripe Sealaska ID Card, please contact Shareholder Records at 800.848.5921 and ask for a new one. There is a charge of $2.50 for duplicate or replacement cards. However, there is no charge for re-issuance of a card in the case of routine stock transfers, such as a name change.

What is Sealaska doing for younger shareholders?
Sealaska Corporation has a continuing concern for the younger generations. Sealaska has a corporate contributions program from which funds are directed to programs for children. The Sealaska Intern Program and Sealaska Heritage Institute (SHI) scholarship programs are two ongoing programs specifically designed to help our young people. E-mail SHI Scholarships for more information. Also see Shareholder Descendants for additional information about a 2007 shareholder vote regarding enrolling descendants into Sealaska Corporation.

Will the "landless" receive land?
The Southeast Alaska Landless Corporation, representing landless shareholders of Wrangell, Petersburg, Ketchikan, Tenakee Springs and Haines, is working with Alaska's congressional delegation to try to acquire land as an ANCSA corporation. Sealaska has contributed a significant amount of financial and technical assistance toward this ongoing effort. See the August 2006 Shareholder newsletter for more information. See also Campaigns.

What protections and rights do the "1991 Amendments" provide?
The "1991 Amendments" to ANCSA became law February 3, 1988. They are collectively known as the "1991 Amendments" because they addressed issues that were to change by 1991. They provide several critical protections for Native corporations:

Land protections
Land cannot be taxed unless or until developed; cannot be taken through adverse possession or by creditors unless mortgaged; cannot be lost through bankruptcy; and cannot be lost if the corporation is involuntarily dissolved.

Stock restrictions
Corporation stock cannot be sold, pledged as collateral, traded or taken away to pay a debt. Stock can only change hands: 1) by court order, 2) to avoid professional conflict, or 3) by gifting; and restrictions automatically continue unless shareholders vote to remove them.

Other issues
Welfare eligibility is not affected by dividends unless the amount of dividends exceeds $2,000 in one year. Distributions from the Alaska Native Fund are tax free. Native corporations qualify as minority businesses and are allowed to give preference to shareholders when hiring.

To read the complete report, please see the "Making it Work" document, a guide to the 1991 amendments, below.

Who can I contact for a business loan?
For loan information, contact:

Branch of Financial Assistance
Bureau of Indian Affairs
Juneau office
Phone: 800.645.8397 or 907.586.7183

Business and Economic Development Section
Central Council of the Tlingit and Haida Indian Tribes of Alaska
Phone: 907.586.1432 or 800.344.1432

Juneau Economic Development Council
612 W. Willoughby Ave., Suite A
Juneau, AK 99801
907.463.3662

Sealaska does not offer business development loans or technical assistance.

Recommended Reading:
You may also want to call the Alaska Small Business Development Center in Anchorage at 907.274.7232, and ask for a copy of its "Alaska Small Business Resource Guide."

Is there technical assistance available to start my own business?
The BIA and the Central Council of the Tlingit and Haida Indian Tribes of Alaska offer this assistance. Sealaska does not offer technical assistance.

In Alaska, the state of Alaska Division of Business Development Department of Commerce and Economic Development has centers to provide assistance in business and financial plan development, marketing advice and other subjects. Call 800.478.3474 for the Alaska Business Development Center nearest you.

The State of Alaska also offers a variety of information on business development, under the programs of the Department of Commerce and Economic Development.

Does Sealaska have funds for shareholders to invest in buying limited-entry permits?
No, but there are loan programs available through the State of Alaska, Department of Commerce and Economic Development, Division of Investments, Limited Entry Permit Loans (Alaska residents only). In Juneau, call 907.465.2510.

Please email your questions and comments to Sealaska.

Resource	Date
Making it Work (2986 KB) A guide to PL 200-241 (AKA "1991 Amendments") the 1987 amendments to the Alaska Native Claims Settlement Act. The Alaska Federation of Natives prepared this guide (released in 1988) for Alaska Native leaders, primarily village leaders and village corporation Boards of Directors. It is intended for use by Alaska Native leaders who have both a policymaking responsibility and a high level of interest in the 1991 law. Read more...	April 01, 2006

Download Acrobat Reader

Copyright 2010 Sealaska Corporation

Join Our eNews Network