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The meeting re-convened at 1.15pm
CB – informed the members that the structure would now be informal and would allow individuals the opportunity to ask questions and make observations about any topics concerned with the club. The second session will focus on the offer made by Seasons Holidays PLC.. He re-introduced Anne–Marie James-AMJ, representing Membership Services (Seasons) and Christine Gregory-CG, representing the Trustees (Hutchinsons & Co), who had now joined the top table, both of whom had kindly come to deal with those members questions concerning the offer that fall under their particular expertise. To put the records straight CB informed the meeting that the committee had no prior knowledge of the offer. All committee members received the same letter at the same time as everyone else. Our immediate action was to contact DC for more information, to request for an extension to allow the membership to debate the offer and to post advice and subsequent news on the website. The earliest opportunity to contact all members was with the notification of today’s AGM, when a letter from the Chairman was attached which included the news of the extended deadline. CB did state that he and the rest of the committee were very unhappy that they had not been consulted in advance and that had the offer been discussed with the committee beforehand much of the ensuing confusion and resulting complications could have been avoided. The process would therefore have been far simpler. DC stated that for his part he had no hidden agenda and would be both open and candid in what he would present to the members and in the answering of their questions. He presented the meeting with a discussion document that outlined the Seasons offer (Discussion document for the merger of LPOC into ‘Seasons’- Document 6).
10. Questions and Answers CB-began by asking the following questions which were of concern to many members who had contacted him regarding the offer. The questions were directed to CG i. Is it legal to dissolve the club? ii. How can this be done? iii. What then happens to the Owners’ certificates? iv Can an owner still retain their normal rights and enjoy LPOC levels of fees once the club has been merged with Seasons CG-replied- i As stated in clause 27.1 of the Constitution a Special General Meeting can be called by no less than 10% of the total voting membership with the view to the winding up of the club. ii. Once the date for the SGM has been called a minimum of 14 days notice has to be given to members, this she interpret as 14 working days plus 2 days allowed for posting. The notification would be accompanied by a proxy voting form for those members who are unable to attend. All proxy forms and voting slips will go directly to Hutchinsons, acting totally independently, to ensure accuracy and absolute transparency throughout the voting process. Under the terms of the Constitution the obligation is to post the notification to the last known address, so it is up to the individual member to ensure that they inform Hutchinsons of any changes. Members are entitled to one vote per certificate even if the certificate is in joint names, however if a member owns more than 1 week at Laugharne then that member is entitled to 1 vote for each week held. In order for the motion to be carried there has to be a ¾ majority in favour (75% iii. Whatever type of certificate held (Fixed, Floating, Points), in the event of a successful vote, the holder will need to surrender it to Hutchinsons, who will then cancel it and then issue a new certificate that gives Seasons membership, with the same value of the one surrendered (green, yellow, red etc.) and under the terms agreed at the SGM. iv If the vote to merge with Seasons (wind up the club), is successful then all LPOC certificates will cease to exist from that point on. The right of occupancy under the terms of the LPOC certificate will cease.
Points and questions that were raised during CG’s response to CB’s questions-
Nigel Spring-Beynon- pointed out that under clause 23 in the Constitution, although it rightly states that 75% of the votes are required, it does go on to state- per member rather than per certificate held. He went on to say that Seasons has always been understood to be 1 member with a multi-certificate holding. This could change the entire process and does need to be clarified. CG- responded by stating that under the definition it does vary all the way through and it is not always clear. CG went on to say that it is her view that it does apply to the certificates held but she could not give a definite ruling on this at this meeting and that she would take this point back to the office and if required would seek the expertise of a lawyer.
The differences between the LPOC and Seasons rights of occupancy was raised by a number of members. i.e. LPOC constitution states ‘…a right to occupy’, whereas Seasons Holidays gives ‘…a right to a membership of a club’ CG- replied that whereas there are distinct differences between the two, both forms of membership are backed by a week of inventory that is held in trust by Hutchinsons. This was further developed and clarified- that although, unlike the Fixed Week ownership enjoyed as a LPOC member, the member may not be offered the same unit (at Laugharne) or the same week, Seasons will have to provide a week that is of the same type unit (or better) and within the same time period (green, yellow etc. or again better). CB- stated that there was a guarantee outlined in the offer (Document 6) specifically for Fixed Week LPOC members moving over to Seasons regarding their right of occupancy, which would be explained later by DC.
The Chairman called on David Clarke to go over the details of the Seasons offer-
DC- * Database- there would be a full reconciliation between the databases held by Membership Services and Hutchinsons to ensure that, as far as can be known, all names, addresses and type of ownership would be up to date and correct. He proposed that, as a further safeguard, the mailing for the SGM would go out by recorded delivery, any returns would be followed up and therefore ensure that every effort had been made to contact every member. * There are 3 constitutions for LPOC- Fixed, Floating and Points. The issues raised about occupancy rights only really effects the Fixed Week owners. The Floating and Points ownership is not that different from that of Seasons ownership These two forms of membership are, just as with Seasons, underpinned by a fixed week. The Seasons system is based on multiple resorts and there is the guarantee of a unit of the size, type and colour band or better that the member is entitled to Occasionally there may be a problem with the assigned unit, but any changes to the holiday arrangements will ensure that it will still be at the same resort, in the same size unit, or better and for that same week. This is the responsibility of AMJ (Membership Services). * In 2006 Seasons Holidays bought a resort in Cornwall- Clowance, which is a Flagship resort of Timeshare in the UK. Seasons objective is now to raise the level of all its resorts to that enjoyed at Clowance. DC showed the meeting a cut glass award, presented at a recent OTE convention (Association of Timeshare Developers, Marketers and Trustees). The award was for the recent refurbishment of the Whitbarrow resort. £2,000,000 was spent on upgrading the leisure facilities and restaurant, using the Clowance model. Similarly major refurbishment is underway at the Forest Hills resort (Estepona, Spain) and Seasons are hoping for the same award next year for that work. At some point in the future Seasons are hoping to do similar work at Laugharne so that it can then become the UK Flagship resort. * In response to the interpretation of the rules within the constitution (clause 23) as to the voting rights, DC suggested, offering a scenario where Seasons Title are holding 3,547 with ordinary members holding just 3, that those 3 members would have more of a say than Seasons Title would be an unreasonable and unfair interpretation of that clause. * DC informed the meeting that it was the Whitbarrow Hall committee, seeing a similar decline in their independent membership as at Laugharne, that approached Seasons with the objective of merging. At the meeting held to decide the issue it was not necessary to use the Seasons Title block vote because the Whitbarrow membership themselves produced the necessary majority to allow for that merger. He further stated that it is his wish that the same would happen at LP so that we could move on (collectively) with a vision of improving the facilities at LP. * 4 years ago Seasons led by Michael Foundly the then MD of Seasons approached Carmarthenshire County Council with a plan to build more units and to upgrade the area on the site of the Tenko units. The application was rejected, largely because the plans called for building above the tree line overlooking the bay, so the plans were dropped. * DC presented a number of architect’s impressions of the new proposal for the re-development of LP ( As stated in the AGM the buildings will be environmentally friendly, along the lines being explored at Clowance). He stated that this would be a very major development that would mean a large increase in the number of units and many new and improved facilities (It was confirmed during the AGM that the existing units, including the Dylans and Pembrokes would be demolished to make way for this new development). However he stressed that what he was presenting was still only a schematic and although initial negotiations with Carmarthenshire C.C. and early indications from the Welsh Assembly Government were encouraging, these plans are still at a very early stage, will take a long time to come to fruition and may not even happen. However if these plans are approved DC stressed the he needs to have LPOC members behind the project as much as Seasons are behind it. All that can be certain is that the bases that were for the Pembrokes that were never constructed, could still be built on and some building could go ahead in place of the Tenkos (but below the tree line). * DC referred the meeting to Document 6.
i. He offered this as a template that he hoped could be agreed on as the basis for a merger between LPOC and Seasons Title. He suggested that technically this should not be looked on as LPOC winding up, but that through a merger of LPOC into Seasons everyone becomes a Seasons member and then the only member of LPOC will be Seasons Title Ltd. ii. What is on offer is that there will be no charge to LPOC members whatsoever. All the Trustees legal fees for transferring to Seasons will be paid by Seasons (clause 1&4). iii. For those owners wishing to keep their Fixed Week entitlement this will remain as a guaranteed right for as long as that member wishes it to remain so or until 2069, or if the unit has been demolished to make way for re-development. In the case of the latter there is a promise to make the best endeavour to replace with the same week, in a unit of the same or better size/quality and near the original site of that building. Later DC expanded on this by stating that for those who wished to retain this right of occupancy, this will become a default i.e. the system will be set up by Membership Services to that members existing unit and week unless that individual member wishes to opt out in any specific year in order to use another Seasons resort, affiliated resort, or use an exchange company, provided that sufficient notice is given (unspecified)(clause 3). iv. ‘Charter Membership’, also referred to as ‘Full Membership’ will be given to all. (This includes for example that member will be able to take advantage of midweek, weekend and sunshine bonus breaks, without giving up the week owned, at varying cost. In certain cases exchange of the held week for 2 or 3 weeks at no additional cost. All year round Country Club Membership to any Seasons resort in the UK and access to the network of affiliated resorts world wide-for full details see Seasons Holidays brochure or visit the website) and in addition to take advantage of any benefits that come from time to time from such as Interval International or Cruise companies etc. If any member sells their week privately which they are entitled to do the ‘Charter Membership’ element does not pass on with that certificate (clause 2). v. All members who transfer to Seasons will be credited with 2 bonus weeks per certificate to be taken within 2 years. If members hold more than 1 week then the period would be extended to make it more practical. (AMJ confirmed that these bonus weeks will be available from the same colour band as the week/s owned)(clause 5). vi. The monies left in LPOC ban account after the merger has taken place will be distributed only to the private members. Seasons Title is making no claim to any of that money, although Seasons had made a contribution to that fund.. DB- informed the meeting that the majority is held in a high interest account and could not give an exact figure at this point in time, but it will just over £100,000 (by the maturity date at the end of March 2009)(clause 6). vii. The Seasons management are offering £500 to any member who does not wish to move over. It was clarified later by DC that this offer would only be available up to the point of the merger, allowing for due process and any reasonable delays. The offer will then be withdrawn. So any member who takes up Seasons membership will not be entitled to the £500 at a later date. However Seasons do buy back from their existing members on a case by case basis, this is not a policy, but each case is considered on its own merit (clause 7). viii. Currently Seasons owners settle their annual Management Fees by Direct Debit, with the option of paying by 3 equal monthly instalments, a facility not available to LPOC members, but one that would be extended to LPOC members on transfer (clause 8). ix. Seasons operate a Resort Trustee system as opposed to LPOC, which has a Club Trustee system. Seasons have their own consultative committee called SOCC comprising of Seasons owners who meet with Seasons, very much in the same way that Seasons meet with the Fixed Week clubs, to discuss directions, complaints, Management fee levels, resort refurbishment programmes etc. Members have full access to them and they have their own newsletter which they circulate and they also have access to the Seasons website through which they can be contacted. SOCC contributes to the Seasons ‘e-news’, which is an electronic newsletter that all Seasons members can opt to receive via the Internet. (clause 10). x. Following a positive vote to merge LPOC into Seasons, members will be required to surrender their certificates to the Trustees (Hutchinsons) to be converted into the equivalent Seasons certificate (clause 11).
Following DC’s presentation there was a lengthy debate, some of the results of that debate have been inserted above. The following is the results of the remainder- Regarding the issue of who benefits from the residual LPOC funds after the winding up of the club. CG- stated that, in effect, under the terms of the constitution it is not clear and until there is a decision to move towards the winding up of the club Hutchinsons are not in a position to give a ruling and that they may well have to take advice if and when it gets to that point. CB- stated that his advice would be, for the moment at least, to do nothing and wait for the outcome of the SGM. For anyone who has already moved over, or for those who move over subsequently, prior to the winding up of the club, their right to any share in the residual funds is in question. Nigel Spring-Benyon- supported that view and advised that the safest route now is to work towards a mass transfer. At the point of liquidation those remaining members are still members and therefore will definitely benefit.
Nigel Spring- Beynon- how do Seasons set out their charges for their members? DC- Seasons has an ‘all inclusive’ fee which is an average of all the resorts in the Seasons portfolio. It depends on the size of unit i.e. Studio, 1 Bed, 2 Bed, 3 Bed. But within that range the charge is the same for all colour bands. Nigel Spring-Beynon- are the utility charges included in the Management Charge? DC- yes and there is no separate sinking fund charge either. Current fees (2008) are- Studio- £355, 1 Bed- £367, 2 Bed- £390, 3 Bed- £412. As posted on the Seasons website. Member- at Laugharne we refer to the units as for example ‘sleeps 6.’ DC- that would be a T2 therefore a 2 bedroom unit. Member- what will be the Management fee for a 2 Bed, sleeps 6 in 2009? DC- the fee has not yet been finalized with SOCC, we are still reviewing the projection on the utility costs for 2009. Seasons are looking for something slightly in excess of £420 (2 Bed- which equates to sleep 6), but this would not be more than a few pounds. He added that for a 1 Bed-sleep 4, the figure under discussion is £392, but again this could increase by a few pounds Member- why is there no differentiation between the different colour bands in respect of the buy back offer. DC- this would become very complicated, as we would then have to consider the different unit sizes, the different forms of ownership (Fixed, Floating, Points) and even the original purchase price. We decided therefore to offer a mean average to all, which he pointed, out happened to be the figure asked for by the Whitbarrow club’s committee. Member-who owns a 2 Bed, Sleep 6- Red who paid £5,000 for this 15 years ago. His point was that he either has the choice of paying a lot more to Seasons to keep that week or accept £500, which is such a small figure by comparison. DC- accepted the members point but did warn against the problems and dangers of trying to sell on the open market. He suggested that although he might get more that £500, but may have to wait a long time and may risk employing the services of a company that will ask for an upfront fee but may never actually sell your certificate. Member-was rung up last week with an offer to sell their certificate but wanted a holding fee of £1,290. DC- OTE are trying to stop that kind of practice. If they are not members of OTE then beware. Member-we now have a week that has a nominal value on the open market, what will be the situation after moving over to Seasons. Can we sell that week? CG- yes you do have an asset that you can sell. Hutchinsons have a help desk normally manned by Sharon Clement. A lot of people ring up for advice on selling. The advice is always to use a company that are registered with OTE. She went on to say that she recently looked on a re-sale company website, she said that she went through at least 9 pages of around 30 certificates per page, where the offer prices were between £150 to £500. DC- added that often there are delinquent certificates being offered for sale that in fact have no value at all. Reputable companies will contact the parent company (Seasons) to check on the validity of the certificate that they are being asked to sell on before they agree to go ahead. If a member tries to sell an LPOC certificate now and it is bought by someone after the merger has gone through then it will technically become a Seasons certificate by default, but this cannot necessarily be guaranteed.
Member-one of the reasons for looking at a merger is because LPOC members have a liability to cover the outstanding money owed as a result of the failure of the delinquent members to pay their Management fees. Would this also be the case as a member of Seasons? DC- Seasons members will not be called on to cover shortfalls caused through delinquency. There will be no additional amounts called for once the Management fees have been set. This may well explain in part why the Seasons fees are higher than those of LPOC. If for some reason the merger does not go through, in 2009 Seasons will place a levy on the members who have paid to cover the shortfall left through the non-payment of any delinquent members. Although it is unlikely to be as high as in 2007 when it was £44,000, whatever the shortfall is Seasons will bill the remaining members for it. Seasons having made such a good offer to LPOC members to move over, that this liability will not be covered in the future. GB- informed the meeting that in smaller resorts they would have to make a small claims charge against that defaulting member, which in itself costs money, to recover the Maintenance fee and the costs incurred whist trying to sell that certificate. A later related members question was answered by DC- who stated that Seasons do not have a policy to take non-payers to small claims court. They will chase that member with follow up demands, but finally the delinquent members certificate will be taken away and reused by Seasons.
Member-does the October deadline for moving over to Seasons still stand? CB- No. That deadline was set before Seasons’ offer became linked to a merger. The deadline therefore is now tied to that. There are legal requirements regarding the timescale of an SGM that CG explained earlier. So a final date cannot at this time be given, the target is to settle it before the end of December 2008. However the information that members will need will come with the notification of and the minutes from the SGM. CB’s advice is to do nothing now and wait for the results of the SGM.
Member-are there any plans to re-affiliate with RCI? DC-we have been talking to RCI for the last 2 years, however Seasons are not going to move away from Interval, who have looked after Seasons well, against RCI who make promises, but nothing tangible is ever offered by them. RCI is part of the Wyndam Group and that group is in a lot of financial difficulty as a result of the current world wide financial crisis. This crisis will also affect Interval but not as hard as RCI. It is therefore very unlikely that Seasons will go back to RCI in the near future. At the OTE convention mentioned earlier we agreed to take on a further 3 affiliate programmes. The game plan is to build a resort portfolio and an affiliate programme strong enough so that Seasons will not need an exchange organisation. Interval does not like what we are doing in this respect, but we have to get to a point where we are not dependent on an American third party dictating terms to the European Timeshare market.
Nigel Spring-Beynon- wished to highlight that in his opinion in the case of Seasons there is no control of fees year on year, in effect the company can charge what it likes, tempered only by that of market forces. However the constitution and the membership of LPOC is such that there are instruments in place to control the expenditure. DC-responded by saying that the statement was misleading. He used the expression ‘Guest in best’ (which interprets as- the interests of the membership are put first). Member (Question asked at a later stage)-What control or input does the Seasons membership have in the control of the management fee? DC-stated that under the club’s constitution, if a management fee is levied and 10% of the invoiced members register their discontentment about the level to the Trustee, then the Management Company and the Trustees have to go to arbitration. There is also SOCC, comprising of Seasons owners who are there to represent the views and best interests of the club’s membership. He added that the reason that the 2009 Management fee has not yet been set is that the agreement on the final figure has not yet been reached with SOCC. Nigel Spring-Beynon- stated that he felt that for this discussion document to become a proper instrument there are certain thing that need tightening up. He referred particularly to clause 3- (sentence 2) Although the development of the site may never take place there is still the possibility that it may and also that it could take several years from the point of planning consent being given to the time that the re-development begins. He recommended therefore that the words- ‘If planning consent is granted, at any point in the future’ be replaced by the words ‘Until such time as a development programme commences’, to ensure that those Fixed Week owners can enjoy their promised right of occupation up until the last. The other point (again clause 3 sentence 2)- ‘..,Seasons will use best endeavours to provide the same week, and physicality, as currently enjoyed…’, is concerned with the interpretation of the word ‘physicality’. Does that actually mean the same physical location? DC- stated that that is what it does mean. But he added that, whereas a guarantee can be given regarding the same week, it is impossible to give the same regarding location (new plans may call for different size units at that location or the actual position of a new unit may not be in exactly the same place). Nigel Spring Beynon-concluded by saying that he would want to see this document refined to the point that it could be brought to the SGM as an instrument, in effect a contract, with all the promises made clearly written downas firm and binding commitments, which could then be an agreement signed by the Seasons representative and the members at the SGM and that it would be a mass transfer of all the membership at that point. He did add that in the past there had been promises made to the membership, which had not been written down and were not fulfilled and this process should avoid such a situation occurring again. CB- pointed out that this document was still just a draft and the intention had always been, having first listened to all the comments and suggestions at this meeting, to take it away and in effect, produce a definitive document along the lines that Nigel is calling for. DC-stated that as part of the process at the Whitbarrow Hall Club, a document like the one presented to this meeting, was presented to their members at the AGM, it was amended, it went to the EGM (the vehicle employed to vote on the merger there), where it was finally amended and then was signed by the committee on behalf of the membership and signed by Seasons Holidays on behalf of Seasons. A copy was given with every certificate that was issued to every Whitbarrow Hall owner. That is exactly what must happen at the LPOC SGM. Nigel Spring-Beynon-at a later point suggested that, if it is the intention that the committee sign this document on behalf of the membership, if the vote is in favour of the merger, then there needs to be an additional resolution that will empower them the to do so.
Members asked about the costs of the exercise of transfer. DC- all costs will be borne by Seasons, there will be no cost to any LPOC member or the club. Frank Wells- stated that he can see advantages for LPOC members in transferring across, but he asked, what does Seasons get out of it? DC- The financial climate is poor at present and this equally applies to the Timeshare industry. However, it is Seasons intention to continue to build more holiday homes to sell. The buzzword now is ‘Fractional’ i.e. selling ½, ¼ etc. shares in a unit. Seasons are already involved in this new form of Timeshare enterprise elsewhere and want to extend this operation to Laugharne. There has to be a minimum of 71 units at Laugharne that is an absolute condition imposed on Seasons by the Trustees, but Seasons want to build more. This will require major development at the site, which will have to be brought up to such a standard and provide a sufficient range of facilities that will attract future investors. This cannot be undertaken until the financial situation improves, at least 3 years, but through the merging of LPOC and Seasons at Laugharne, Seasons will have the independence it needs to see these plans through when the time is right. That is what Seasons will get out of this.
Frank Pearson- gave a lot of information to the meeting, based on his own expertise, as to the likely cost of re-building under the current regulations related to carbon neutrality and sustainability. In his estimation the cost could be as much £10,000 in order to meet just these requirements. He further stated that in the light of this it might have been better to have raised the LPOC management fee all along.
In response to a related members question DC- stated that the ballpark figure for developing the site would be £30-35,000,000 and that amount of money is not available at this time. Seasons have done well selling ‘fractionals’ up until now and are using the income gained over the last year to buy hotels, as this area is now very much a buyers market. The County Hotel in Bath was purchased three weeks ago and there are other inner city hotels currently under negotiation. Mr Cox- offered a summary of the issues before the club by saying that in his view there are 3 simple choices that each individual owner will have to make their minds up about- i To vote for LPOC to continue as an independent club, with a lower cost in overall fees, but he pointed out that contrary to a previous statement, the club is not really in control of its finances, particularly now that Seasons through DC have declared that they will no longer cover the shortfall left through defaulting. That declaration from Seasons he called ‘the iron fist’ but he qualified this by saying that it was not unreasonable, because they are in this position by legitimate means, that is to say the actions of our own defaulters. ii. To accept the Seasons offer to join them with very much the same package, yes with an increase in fees, but with a couple of free weeks as well. iii. Or to accept the £500 and bail out all together. He concluded by saying that the ‘iron fist’ was in fact in a ‘velvet glove’ and whereas he had previously written this off as a bad investment, he now believes that this is actually quite a nice offer. CB-followed these points up by adding-LPOC fees were clearly set too low at least from 2006, the fact that club funds had to be used to cover the shortfall (excluding the defaulting element, covered by Seasons) proves this. Referring to point ii he said that what Seasons are offering is not just the same package, but members can use the other resorts in their portfolio, this does not cost anymore and members can access the 70+ affiliated resorts for £20 currently. He invited the members to put that cost against the cost of using II for exchange. He concluded by suggesting that as situations move on, perhaps so should mindsets and therefore for individuals not just to look at the negative aspects of the deal but consider what the positives could be.
Barry Brown-asked for a few points of clarification. What is ‘Chartered Membership’? (The details of this are covered in point iv in DC’s presentation.). If I want to keep my fixed week can I still use II? DC- The system will default to that fixed week that the owner currently has, if that is what that owner wishes, but II can also be used, provided that adequate notice is given. (Notice was not specified at the meeting, but will need to be clearly stated in the final document). Member- how does the system work for Floating/Points owner? CB- stated that he is a Floating member and on conversion the system would be very similar to the existing one. Presently a request is put in to Membership Services either to visit Laugharne (within the colour band owned) or to exchange in II. As CB’s form of membership also includes the right to use Burn Park and Knocktopher Abbey, he could request to use one or other of these resorts in any given year. When an exchange week is allocated against his request, it could be allocated to Burn or Knocktopher as well as to Laugharne. DC- added that exactly the same system would apply to Points owners. AMJ-confirmed that these details were correct. (Again, no timescale was given as to how far in advance a request should be made). Member- it has been stated that utility fees are included in the Seasons Management fee. Is this the case elsewhere? DC- with certain exceptions in the States it is rare for resorts to charge utility fees separately and therefore for those who exchange into them.
Michael Summers- In order to achieve the aspirations that Seasons has and to obtain the funding to carry these plans out, is there any likelihood of Seasons merging with or being taken over by another company? DC- No. The intention is for the company to grow as an independent entity.
Michael Summers- Following the original offer he moved over to Seasons. He asked if he would still be able to benefit from the terms of the revised offer. DC-unfortunately this cannot be extended to those who have already moved over. CB- reminded the meeting of committees disappointment in not having been consulted in advance of the offer being made and that they had made every effort within the means available to respond as quickly as they could. He added that those who have already moved across have not been forgotten and the committee will continue to work on their behalf.
Member-regarding the bonus weeks contained in the Seasons offer, will they be offered in the same colour band as the member owns e.g. Red for Red. AMJ-confirmed that, as part of the merger package the 2 bonus weeks (clause 5) can be taken within the colour banding owned by the member and at any of the Seasons resorts.
Member- originally bought a yellow floating week. When first bought the wedding anniversary and husband’s birthday dates were within that banding. When the bandings were altered a few years ago these dates moved into the Red band and therefore could no longer be used. On moving over to Seasons will that new certificate state yellow or will it specify approximate dates. The concern is that having been changed once it could be changed again. DC- stated that as this appears to be a special case and that he would wish to offer a Red to that member, but would have to consult about it, further stating that it is also his wish that all members moving over will at least have the same if not better. Member- would that not then be at the detriment of those members who paid for the higher banding? CB- stated that this could not be decided on at this meeting, but would it be taken away for further consideration. He added that this is of general interest and pointed out that in the Seasons brochure members should be aware that although Burn, Clowance, Knocktopher and Brunston have the same banding calendar as Laugharne with Forest Hill and Alpinus being almost the same, Whitbarrow and Club Tahiti have no Green or Yellow weeks at all. (The members of the committee saw the Seasons brochure for the first time at this meeting, and were concerned about the lack of availability for Green and Yellow week owners, they will be pursuing this issue on behalf of these owners with DC).
At this point a straw pole was taken of the meeting. The question was- ‘Who definitely does not wish to move over to Seasons but wishes to remain with LPOC’. There was 1 member only whose hand was up- no reasons were offered. This was out of an approximately 50 members who were remaining at the meeting.
Nigel Spring-Beynon- accepting the merger goes ahead, realistically can the transfer be completed by the 31st. December. DC- It will be very tight, but if this cannot be achieved then it will cause a great deal of logistical problems later. Frank Wells- If the members are going to give the committee the empowerment to sign on their behalf at the SGM, if this ‘Memorandum of Intent’ is prepared in advance, it could then be confirmed at the SGM, allowing the committee and the Management Company to proceed with the process, so there should be no problem. CB- that part of it would not be the problem. The real problem will be in the issuing of new certificates to the members. Until a new certificate is issued no Management fee invoice can be sent out and members will not be able to organise their holiday for 2009. CG- stated that following a positive vote for the merger the members must then surrender their LPOC certificates to the Trustees, who will then issue Seasons certificates in their place. Until that has happened technically that individual will not be a member of Seasons. If members do not contact the Trustees there will be an indemnity issued for them. Member – there may well be a proportion that will never contact the Trustees. Will that hold up the process. CG- no it will not Member-What happens if a member cannot find their LPOC certificate. CG- an indemnity form will be issued which will have to be signed by the member, with the proviso that if and when the certificate is found it will be surrendered to the Trustees. There will be no charge for that service. Member- if a member does not wish to move over to Seasons and therefore take advantage of the offer to buy back, what is the timescale for doing this? CB- If the merger is agreed at the SGM, it would seem reasonable that those members present, who do not wish to convert to Seasons would surrender their certificates more or less straight away, informing the Trustees that they do not wish their certificates to be converted. Minutes will be sent out within 2 weeks of the SGM informing those members who did not attend of the result of the vote and their options. An absolute cut of date has not yet been decided by the Seasons management but, it would be reasonable to assume that those members not wishing to convert would then contact the Trustees in the same way as above, very shortly after receiving the minutes. Member- as an owner in LPOC I can allow others to use my week in my place, without physically having to be there. Will the same be possible as a Seasons member. AMJ- yes, provided that you let Reservations know in advance. CB- there are concerns that have been expressed to me that after moving over I won’t get the week and resort that I requested. Members should get in touch with membership Services and seek advice as to the best way to go about this, but it does seem obvious that last minute requests are unlikely to achieve the desired objective. Member- Could you clarify who qualifies for the Elite membership and what benefits does it provide? DC-normally those members who have 2 or more Red weeks would qualify, but there is a perceived value on this membership. Through discussions with SOCC the terms of entry can change based on what is on the table from Seasons business partners. The level of investment by a member is also a qualifying factor and in certain circumstances Seasons may ask for an additional sum of money-say £800 for that member to achieve the entry level. Current benefits include such things as free membership of Ice Gallery (a cruise exchange club), Hotels Unlimited (city centre breaks), bonus weeks with Interval, half price Seasons bonus weeks, no booking fee to use affiliated resorts.
The chairman thanked the members for their contribution to the meeting. Their questions and comments were both probing and meaningful and gave a lot of food for thought as the committee prepare for the SGM.
The meeting closed at 4.30 pm.
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