Golf Club possibly going bust

[davethepaver]

I am a new member (12 month subscription) at a sports club that I have recently learnt is soon to run out of money and is no loger able to pay it's debts to the bank (just under 1 million in total). This is a members club, not a Ltd business.

 

The general consensus is that the bank will take over the running of the club, and eventually it will be sold to a buyer and current members will not really be affected either way.

 

I am not so confident.

 

Would there be any legal requirement for the new owners to honor existing members? Or would the bank even continue running the club and not simply shut it down.

Edited April 28, 2013 by davethepaver

[unclebulgaria67]

I am a new member (12 month subscription) at a sports club that I have recently learnt is soon to run out of money and is no loger able to pay it's debts to the bank (just under 1 million in total). This is a members club, not a Ltd business.

 

The general consensus is that the bank will take over the running of the club, and eventually it will be sold to a buyer and current members will not really be affected either way.

 

I am not so confident.

 

Would there be any legal requirement for the new owners to honor existing members? Or would the bank even continue running the club and not simply shut it down.

 

I have seen this happen with a Golf Club and members current membership was not honoured. It basically closed and when the new owners took over, members were offered the chance to rejoin, without any consideration of any fees already paid.

 

I doubt that bank will be interested in appointing adminstrators to run the club for any extended period, but I suppose they will take advice to see what the best course of action is. It will come down to whether the club as it is currently set up, is financially viable or not.

[ericsbrother]

The liability for the debts of members clubs are a minefield but for ordinary members the liability is limited to the subscription.

Therefore the most you can lose is what you have already paid but any rights you have will cease as no-one other than the club has any obligations to you either.

The bank wont be running the club, they may administer it which could mean that the club carries on for the moment if the bank thinks that the "committee" is sound but more than likely they will take whatever they can to cover their debts. This places no obligation whatsoever on any purchaser towards the membership.

[ericsbrother]

As a member, you would be entitled to a payout if there is any money left over once debts are cleared and assets sold.