Golf Clubs Going Bust?

M12NUTS

Hello all,
I have a question someone maybe able to shed some light on for me.
I’m a member of a local golf club in the south east that is in serious debt things are not looking good.
My question is, what happens to the members if the club goes bankrupt? Are they liable?

Jul3s

M12NUTS wrote: »

Hello all,
I have a question someone maybe able to shed some light on for me.
I’m a member of a local golf club in the south east that is in serious debt things are not looking good.
My question is, what happens to the members if the club goes bankrupt? Are they liable?

Yup you're personally liable, time to transfer all your worldly goods to your wife(if you can trust her).

uberwolf

never trust an answer to a vague question.
Consult your solicitor.

soundsham

M12NUTS wrote: »

Hello all,
I have a question someone maybe able to shed some light on for me.
I’m a member of a local golf club in the south east that is in serious debt things are not looking good.
My question is, what happens to the members if the club goes bankrupt? Are they liable?

Who owns the club ?

mr.mickels

I know of 2 clubs in the Cork city/county area where I am told the members clubs have run up big debts redeveloping in the last few years, both clubs are losing members and society bookings and as things stand they aren't even covering the interest on their loans. Things looking very bleak for one of the clubs, and a member tells me they are still spending alot of money on the course plus official dinners etc. "alot more money still going out than is coming in" was how he put it. I wonder at what stage the banks would step in and tell them to get real with their finances. How often has a bank taken the assets (course/land) off a members-owned club that ran up debts they will never repay???

slave1

Interesting thread, I'm looking to join a club next season so wondering is there any website or source to find out their financial situation, don't want to inherit debt or similar

namloc1980

slave1 wrote: »

Interesting thread, I'm looking to join a club next season so wondering is there any website or source to find out their financial situation, don't want to inherit debt or similar

You should ask to see the clubs financial accounts if you are thinking of joining a members owned club. As a member you could be liable for any debts that club has if it goes bust.

golfwallah

M12NUTS wrote: »

Hello all,
I have a question someone maybe able to shed some light on for me.
I’m a member of a local golf club in the south east that is in serious debt things are not looking good.
My question is, what happens to the members if the club goes bankrupt? Are they liable?

What happens to the members if the club goes bankrupt depends on a number of factors, for example (and we only worry about such matters when things start to go wrong):
• There are different legal forms of golf club incorporation. For example, a members club can be set up as a Trust with unlimited member liability, or a company limited by guarantee, where members’ liability is limited to a fixed amount.
• A Trust has trustees, who have responsibilities under Trust legislation, up to and including putting their personal assets on the line in the event of a windup.
• A company limited by guarantee has directors, who have responsibilities in law very similar to those of trustees, for example if knowingly trading while insolvent, they can be held personally liable.
• If club is set up as a trust, members’ liability could be unlimited in theory. In practice, however, it depends on what security the club gave for its loans – could be secured on the land, buildings and other club assets. If so, these assets would have to be sold to repay the debt in the event of a windup. In the event of a shortfall, it would be a matter for the bank or receiver to decide how best to recover the balance (e.g. from the members or trustees). If recovery is not a practicable option, the receiver /bank could decide that the debt should be written off.
• If club is set up as a company limited by guarantee, liability of members is limited, usually to about €1.
• You should ask your committee for a copy of the last audited accounts, which would have notes about the form of incorporation of your club and the extent of members’ liability in the event of a winding up.
• Alternatively, if the club is a company limited by guarantee, you could apply to the Companies Registration Office (CRO) for a copy of the club’s latest annual accounts (for a small fee) – google “CRO” for more info.
• If you don’t feel inclined to do the above, best pay your solicitor to do it for you or a group of members.
There are earlier posts on golf club finances (e.g. “You can never be 100% sure about financial viability - but clubs who are viable should have no problem with providing a copy of their audited accounts, if so requested by prospective members - particularly when they are considering paying for 1 or 2 years in advance.”) – see http://www.boards.ie/vbulletin/showthread.php?p=72694647

You can also get some info on the health of club finances on the web by googling something like “golf club finances” or “golf clubs in profit”.
Best of luck!

M12NUTS

Thanks Golfwallah that's exactly what I needed to know!