Sealaska shareholders face historic vote in '07

When Sealaska shareholders vote during their annual meeting next summer, they will essentially decide whether they want to dilute their stock shares in order for future generations to take part in the Native corporation.

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The issue has become heated in recent weeks. Sealaska's board of directors recently wrapped up a series of eight community meetings throughout Southeast Alaska as part of an educational campaign, "Our Sealaska Vote 2007."

"This will be a historic event," said Todd Antioquia, director of communications for the Southeast regional corporation.

"It is a very serious vote that will frame the future of the makeup of the shareholder base within the corporation," he said.

With more than 17,300 shareholders, Sealaska has more shareholders than any regional corporation. Shareholders live in all 50 states and 13 countries.

They will decide next summer whether to issue shares to three groups of people who are classed as descendants, elders, and leftouts.

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The shares are "life estate" shares, meaning they expire upon death, unlike original shares, which can be gifted or inherited.

On June 23, shareholders will vote on three resolutions, including:

• Whether eligible descendants of original shareholders should be issued 100 shares of voting life estate stock.

• If so, whether the corporation should issue 100 shares of nonvoting life estate stock to elders.

• Also, if yes, whether leftouts should be issued 100 shares of voting life estate stock.

The Sealaska Board of Directors unanimously voted to approve the three resolutions, but Vice Chairwoman Rosita Worl said it was not an easy decision to make - and was not without lingering controversy.

The most vocal critics worry that issuing new shares will dilute the value of their own stock.

Richard Beasley of Juneau believes the issue has been forced to a vote and that he and other shareholders must defend the value of their shares.

"It is a nonconsensual issue. We didn't agree to go into this at all. It is being forced on us. We are having to defend the devaluation," he said. "We have a system in place for passing on the shares - it is gifting. It has been a very successful project."

He said he knows no shareholders who plan to vote yes.

Antioquia said the purpose of the second resolution is to protect original shareholders as they get older from seeing dilution of their share value.

"One of the primary concerns that (the board members) were hearing on a fairly consistent basis was how the dilution effect might effect our elders, many of whom might be on fixed incomes. They are a cultural priority for our people," he said.

"I will impact the dividends of shareholders who are not between the ages of 35 and 64," Worl said. "Definitely their dividends will go down. Once they turn 65, then their dividends will increase."

Bertha Karras, a 75-year-old Sitka shareholder, expressed mixed views. On one hand, she has grandchildren who would become enrolled once they are 18, so she supports the measures.

However, she worried that they open the door for fraud. "It's not that I'm selfish, but people have a way to crawl under the fence to get into something like that," she said.

There should be some "real strict stipulations," she said, to prevent those who are not eligible from taking advantage.

Antioquia said the regulations are already strict.

"There is going to be a number of safeguards to ensure only qualified descendants (are enrolled) if the resolution passes. Part of the enrollment process requires that they determine through a third party proof of Alaska Native blood quantum," he said.

Worl said fractional Native descent is another issue that worries opponents.

"The fact of the matter is we do have a lot of intermarriage," she said. "This was a difficult decision to try to make, but it was just a call of the board."

The Alaska Native Claims Settlement Act of 1971 defined Native people as those who have one-quarter or more Native blood.

Sen. Albert Kookesh, (D-Angoon), chair of the Sealaska board of directors, said that without the tribal affiliation recognized by Congress, being a shareholder is the way to maintain connection to the land.

"The money isn't as important to the connection to the land. (The younger generations) come up and say they want to be part of Sealaska because they want the connection," he said.

"I really think that you have to go back and to try and interpret what our grandfathers meant when they passed the land claims settlement act. I really think that people think in terms of more than one generation."

Sealaska has increased education efforts in recent months, Antioquia said. The corporation is sending out newsletters, holding meetings, and using a Web site, www.oursealaska.com.

Voting begins in mid-April, when information packets are sent to every shareholder. Votes are to be tallied during the June 23 annual shareholder meeting in Anchorage.

Who are descendants, elders, and leftouts?

• Elders are original shareholders who have reached the age of 65.

• Leftouts are Natives who missed previous enrollment periods for various reasons.

• Descendants are Native Alaskans born after Dec. 18, 1971, the date the Alaska Native Claims Settlement Act was signed by Congress. They must have one-fourth or more Alaska Native blood and cannot be enrolled in another Native regional corporation. If eligible, they will be issued shares when they reach 18.

Web link

To learn more about the Sealaska Corp. shareholder vote, visit www.oursealaska.com.

• Brittany Retherford can be reached at brittany.retherford@juneauempire.com.