To trust, or not to trust

Abstract

In this case, students are introduced to the Blue Sky Indigenous Nation (BSIN) and its community trust. The community trust was established with capital received from the province when the BSIN surrendered some of its reserve for a provincial highway. Expenditures from the BSIN community trust require the consent of the eligible voters of the First Nation. Two conditions must be satisfied for an expenditure to be made from the BSIN community trust: a majority of the eligible voters, regardless of whether they reside on or off reserve, must participate in the vote and a majority of the votes cast must approve the proposed expenditure. In the event of a failed vote, the government of the BSIN is permitted to spend the interest earned by the trust for the year. Owing to the low rate of participation by eligible voters, particularly voters who reside off reserve, all of the votes in recent years have failed.