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Ash
Ash, Solicitor
Category: Law
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Experience:  Solicitor with 5+ years experience
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The Committee of a Gentleman's Club acting outside club rules

Resolved Question:

The Committee of a Gentleman's Club acting outside club rules and seeking appoint two new trustees who will comply with their wishes in signing lease agreements for part of the club premises under terms which are not acceptable to the existing trustees who are merely seeking an independent professional assessment of the rent which should be charged. The lessees are members of the committee.
What action might be taken to prevent this happening (an injunction, perhaps) or what if it is all done and signed in haste, what then?
Submitted: 2 years ago.
Category: Law
Expert:  Ash replied 2 years ago.
Hello my name is ***** ***** I will help you with this.
What basis do they have for going outside the rules please?
Customer: replied 2 years ago.

The rules state that the President of the Club should take the chair at General Meetings. On this occasion the Chairman of thee club Committee is demanding that he chairs the SGM that is calling into question the way in which the financial and business affairs of the club are conducted. The rules have been followed for the requisitioning of the meeting but whereas the rules state that each member should be given notice in writing only emails have been sent out to about 60% of members and the s/w package used reveals that only about 60% of the messages have been picked up. Notice is displayed in the club but that is beside the point.

The main issue in dispute relates to the letting of the space in the upper floors of the club for offices, mainly to members of the committee, and the lack of transparency with which this is being done. I should aadd that the tenants have been in occupation for over a year now without proper leases having been signed. The proposed lease put forward by the Chairman of the Committee is less than one A4 page which is not considered sufficient by the Trustee who has been asked to sign it off, especially so since he is not happy with the quantum of the rent.

Expert:  Ash replied 2 years ago.
Was is it you want to be able to do please?
Customer: replied 2 years ago.

The Chairman threatens to appoint two cronies to vacant positions as trustees who will then sign off the leases. Can anything be done to stop this? If he does go head and do so before the SGM on 21st April is there anything that can then be done about it?

Expert:  Ash replied 2 years ago.
But they don't have power to do this under the rules, right?
It's being their remit?
Customer: replied 2 years ago.

Under the rules, the trustees may be nominated by the committee and thus nominated they shall execute a trust deed. So what they might do is within the rules but can nothing be done to stop them or to inhibit them from doing so?

The breaking of rules refers to the attempt to supplant the President from taking the chair at the SGM and the failure to give proper notice of the meeting to all members.

Expert:  Ash replied 2 years ago.
Then you need to get an injunction to stop them.
This would if anything just delay it until the SGM. You need to apply to Court using forms N1
http://hmctsformfinder.justice.gov.uk/courtfinder/forms/n001-eng.pdf
And N16a
http://hmctsformfinder.justice.gov.uk/courtfinder/forms/n016a-eng.pdf
The Court will list the matter for hearing and decide whether to make an injunction. If it is contested then it will be set down for a final hearing and a Judge will give directions. If an injunction is made and breached then it would be contempt of Court. They can be warned, fined or sent to prison.
Can I clarify anything for you about this today please?
Alex
Customer: replied 2 years ago.

That clarifies the position admirably. Thank you very much. I presume that there would not be anything that we could do if they were to act before any injunction were in place.

Expert:  Ash replied 2 years ago.
Correct.
Does that help?
Alex
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience: Solicitor with 5+ years experience
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Expert:  Ash replied 2 years ago.
Hi

I am just following up on this. Is there anything else I can help with? If so, please let me know.

Alex.

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