The Alaska Native Claims Settlement Act (ANCSA) established a corporate-based land and compensation framework in exchange for the extinguishment of Aboriginal land claims in Alaska.
In 1971, Congress passed the Alaska Native Claims Settlement Act (ANCSA) to resolve long-standing disputes over Aboriginal land claims in Alaska. Rather than establishing reservations, ANCSA created a unique system of state-chartered regional and village corporations owned by Alaska Native shareholders. These corporations received approximately 44 million acres of land and nearly $1 billion in compensation to be managed for the benefit of their shareholders.
ANCSA explicitly extinguished Aboriginal title in Alaska and replaced collective land stewardship with a corporate ownership and governance structure. The Act prioritized economic participation and integration into the U.S. corporate system, placing land, assets, and decision-making authority under boards of directors governed primarily by state corporate law.
ANCSA’s corporate model remains the legal and governance foundation for Alaska Native land ownership more than 50 years later. While the Act enabled significant economic development, it also introduced long-term complexity around shareholder rights, transparency, voting power, and accountability. Many modern governance challenges stem not from misconduct, but from structural gaps between ANCSA’s original framework and contemporary corporate best practices.
Understanding ANCSA’s origins is essential for shareholders seeking clarity on their rights, boards navigating fiduciary responsibilities, and policymakers evaluating modernization pathways that strengthen both corporate performance and shareholder trust.