March 1, 2017 – Kuujjuaq, Quebec – Makivvik is pleased to announce the creation of a new Development Corporation to further develop regional businesses in Nunavik and beyond. The new Inuit Development Corporation will be 100% owned by Makivvik.
“This is a new chapter in our development,” said Makivvik President Jobie Tukkiapik. “We have been successful in managing our investment portfolio, our subsidiary companies, and joint ventures over the years. We want to go to the next level of professional business management, and in doing so ensure that the Beneficiaries’ Equity carefully administered over the years has even greater opportunities to grow, as well as providing better oversight to our subsidiary companies and joint ventures.”
In the fall of 2016 a Makivvik Structural Review Committee was struck with the mandate to study, review, analyze and make recommendations to the Makivvik Board of Directors with regards to the most effective and appropriate structures for the Corporation to adopt to improve the business operations of the Corporation’s subsidiaries and joint ventures. It also sought to improve its ability to take greater advantage of new business opportunities, with a view to minimize political considerations in business decision-making.
The Committee presented its review and analysis to the Makivvik Board of Directors. There were three main recommendations, as follows:
- In order to improve Makivvik’s business operations and improve its ability to take greater advantage of new business opportunities – Makivvik should create a separate business development arm.
- Decisions must be made on clear business fundamentals set apart from any political considerations.
- Makivvik should create a new corporate entity which would hold all of the voting shares in Makivvik’s wholly owned subsidiaries, and with the power to represent Makivvik in non-wholly owned subsidiaries and joint ventures.
The analysis found that across Inuit Nunangat, Land Claims Organizations had created separate business arms to manage and develop regional enterprises. That model will now be used in the Nunavik region, allowing Makivvik to focus on its political and social mandate for the Inuit of Nunavik.
“Makivvik now serves three times the population as 40 years ago with the same purchasing power as 40 years ago,” said Jobie Tukkiapik. “We are taking careful measures to ensure that all of Makivvik’s investments are sustainable over the long term, for our current and future generations.”
The new Development Corporation brings with it the creation of six new Board of Director positions for it, as well as for First Air, and Air Inuit. An Implementation Committee will develop the selection criteria, conduct interviews with prospective candidates and make recommendations to the Makivvik Board of Directors for the initial new Board appointments.
“Three Director positions on each new Board are reserved for JBNQA Beneficiaries,” said Jobie Tukkiapik. “We will be looking for Inuit with business experience, who are not currently members of the Makivvik Board, or employees. The other three positions on the new Boards may or may not be JBNQA Beneficiaries with both business experience and a professional designation. Thus it is possible that all of the new Board members will be JBNQA Beneficiaries.”
Over the next few months the Implementation Committee tasks include: incorporating the development corporation, developing policies for the new company, reviewing the selection criteria for new Board Members, initiating the search for a new Chief Executive Officer, and drafting a budget for the first year of operations.
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Makivvik is the Land Claims Organization mandated to manage the heritage funds of the Inuit of Nunavik provided for under the James Bay and Northern Québec Agreement. Makivvik’s role includes the administration and investment of these funds and the promotion of economic growth.