Subject to the Constitution of the Club, Memberships may be forfeited
and sold by the Responsible Entity where a Member has:
- continuing arrears in relation to payment of any Application Moneys due;
- continuing default under a finance agreement; or
- continuing arrears in relation to payment of Membership Fees. The process which the Responsible Entity follows when forfeiting a Membership is as follows:
- notice of 14 days (in the case of default under a partly paid Membership or under the finance agreement by the financier) and notice of one month (after a period of one month from the due date of payment in relation to non-payment of Membership Fees) must be given by the Responsible Entity to the Member;
- if the breach has not been remedied or the relevant moneys paid at the end of the notice period, the Membership and all moneys paid to the date of default may be forfeited and the Membership sold by the Responsible Entity and/or the defaulting party can be sued for recovery of outstanding moneys and for specific performance of outstanding obligations. In addition, interest continues to accrue against outstanding moneys;
- if the Responsible Entity decides to forfeit a Membership, it must use reasonable endeavours to sell the Membership, in the case of a PDS, at the price shown in the PDS most recently given and in any other case, at a fair market price obtained by the Responsible Entity using reasonable endeavours;
- the proceeds from the sale of the forfeited Membership (including proceeds of rental or sub-licensing) are applied first to sale costs, next to reasonable forfeiture administration costs, next for outstanding amounts due from the Member as scheme property (which the Responsible Entity holds for the Developer), next for outstanding amounts due from the Member to the Responsible Entity or other person relating to the Member’s participation in the Club, next for amounts payable by the Member or the Responsible Entity to a financier relating to the liability of the Member to that financier for financial accommodation in connection with the acquisition of the forfeited Membership and finally any remaining amount is paid to the Member in return for the Certificate of Membership, if the Certificate is available. If the proceeds of sale are insufficient for these purposes, the Member still remains indebted for the balance;
- the Member irrevocably appoints the Responsible Entity and/or any of its Directors (from time to time but only whilst they are Directors) as that Member’s true and lawful attorney to execute all documents and do all things as the Responsible Entity considers necessary for the purposes of forfeiture and sale; and
- during the period of default, the Members’ rights, privileges, licences and entitlements under the Constitution and the Regulations are suspended, but the Member must still pay applicable Fees.
This disclosure is in satisfaction of the Responsible Entity’s obligation under ASIC Class Order 03/104 of the circumstances in which forfeiture of a Membership may occur and of the procedures for dealing with forfeiture.
The Club has regulations which govern the use and operation of the Club. The regulations are amended from time to time in accordance with the Constitution.
The regulations set out rules in relation to:
- using Club Apartments and Club Resorts;
- reserving accommodation;
- borrowing, renting and pooling Première Points; • Bonus Time Accommodation;
- Developer and Personal benefits; and
- applicable fees.
Under the Corporations Act, the Club is required to maintain a Compliance Plan setting out adequate measures and procedures that the Responsible Entity must apply in operating the scheme to ensure compliance with the Corporations Act and the Club’s Constitution.
The current Compliance Plan for the Club is dated 1 January 2011 and became effective on such date. The Compliance Plan may be modified or replaced with a new Compliance Plan during the life of this PDS. Any modified or new Compliance Plan must be lodged with ASIC.
The Plan sets out the overall duties of the Responsible Person, including the responsibility to report exceptions to compliance and complaints.
It sets forth the measures that need to be taken in the event of non- compliance and the complaints handling procedure. The Plan also includes the functions and responsibilities of the Board of Directors, which include management, business strategies, due diligence, review and assessment of the operations of the Responsible Entity and the Club.
The Plan sets out the role of the Compliance Committee, which is made up of three members, two of whom are independent of the Responsible Entity, who have reporting responsibility to the Board of Directors and ASIC regarding the Responsible Entity’s compliance with the Compliance Plan and applicable law. There is also an external independent auditor of the Compliance Plan, who conducts an annual audit and lodges a copy of their audit report with ASIC.
The Compliance Plan will continue until amended or either the ASIC or the Corporations Act no longer requires a Compliance Plan for the Club.