1. Public, Proprietary &Members Golf ClubThe differences(Malaysian context)

2. In this topic Discussion about differences Scenarios of setting up a club Comparisons Truth about membership and public 3. Public Club Almost an oxymoron A club by definition is an association of twomore people united by a common interest. To show association: fill up form and join Then it becomes membership club! More accurate: a club open to the public Club = a place It is a business 4. To set up a club A company can (T & C apply) A club on its own cannot own land or manytypes of investment (Societies Act 1966) Must set up an incorporated body Or set up a public limited company 5. Scenario 1 A group wants to set up a golf club. They start a club (society/association) underthe Societies Act. One or several of them have to holdproperties on behalf of all. Or dont own any properties; just operate. Intention is not to profit Examples: 6. Scenario 2 A group wants to set up a golf club Set up a Public Limited Company (limited byshares) Buy land for the golf club Can start subsidiaries Just like any othercompany Proprietary club or members club also can. Example: 7. Scenario 3 A group wants to set up a golf club They set up a PLC (limited by guarantee) Get permission; then buy land Must use profits for its own objectives Cannot start subsidiary Many members clubs Examples: Some cases committees are directors. 8. ComparisonSocieties/Assoc/Club Pros Less formalities & expenses 7 or more persons Limited liability Cons No separate legal identity Cannot hold property Cannot sue or be sued asitself; but by name ofmembersCompanies Pros Separate legal entity Limited liability Minimum 2 person Easy to transfer ownership Borrowing power Cons Public can access info Assets belong to company Cost of incorp/winding up Tedious procedure to windup 9. Members vs PropietaryMembers Club Members own the club Members control clubthrough electedcommittee Can do trade by providingfacilities to non-memberson a commercial basisProprietary Club A main proprietor own theclub A business with view toprofit Burden is on buyer toprotect himself 10. Membership Do you want membership? Or public? That is the question In this context Kinrara and Seri Selangor? Or Kota Permai and Tropicana? Management point of view. 11. Membership vs Public ClubMembership/Proprietary Requires RM5m capital Limits to membership Must follow guidelines Must have prospectus Renewable 6 months Have liaison committee Members interestsafeguardedPublic Is a business entity Limited by physicalconstraints. No committee. Company interest comefirst 12. Pro of membership If membership well sold; subscriptionassures income If membership taken up: customer base Recession proof If membership can be sold to developerwho can package it with property. 13. Cons of membership Members think they own the club (they do) Limited time for walk-in golf (more profit) Special pricing for members As part of committees, member want tohave a say in everything 14. In this topic Discussion about differences Scenarios of setting up a club Comparisons Truth about membership and public