Te Ohu Kaimoana and the fisheries settlement entities were established for long-term investment to deliver consistent returns to iwi shareholders and through them to all Maori. The nature of the activities, along with the manner in which these are required to be discharged, has meant that Te Ohu Kaimoana and iwi have been recognised as charitable, although the commercial entities are reliant on market operations to secure a reasonable return on investment.
In line with AFL’s constitution, 40 percent of its Net Profit After Tax (NPAT) must be distributed to its shareholders – iwi and Te Ohu Kaimoana, with the remaining 60 percent retained at the company level for ongoing development. In line with the agreed method of allocation of settlement assets collectively, iwi have 80 percent of the income shares in AFL, with each receiving their shares proportional to the iwi share of the overall Māori population. Te Ohu Kaimoana received the remaining 20 percent of income shares with the money from the dividends being used for its operational expenses.