Court rules special general meeting can move forward (Pelican Resort Club)

POSTED: 07/7/11 2:32 PM

St. Maarten – Friendly Island Properties Ltd. (FIP) achieved an important victory against the Tenant’s Association of Pelican Resort Club (TAPRC) and the Special Foundation to Safeguard Interest of Pelican Resort Club (SBBPRC) in a verdict handed down by The Court in First Instance of St. Maarten on July 6, 2011. This verdict establishes and safeguards the democratic right of a certain majority (10% or more) of the members of TAPRC to call a special membership meeting in order to discuss matters that the member(s) deem important.

The judgment ruled that FIP legally called the special general meeting, set for July 8, 2011, in accordance with the TAPRC Articles of Association, and granted the resort members the right to vote on their future. This verdict puts an end to FIP’s long battle to convince the present board of TAPRC to simply respect FIP’s right to request a special meeting of members to address some cardinal issues.

FIP’s quest to have a special meeting called by the Board of TAPRC started in October 2010 and spans nine months. FIP first requested that the TAPRC Board call a special meeting on October 6, 2010. This request was turned down by the Board of TAPRC on November 2, 2010, without justification. On March 18th, 2011, FIP called for yet another meeting, after it became obvious that the Board of TAPRC would not listen to reason and amend its previous unjustifiable refusal honor FIP’s request.

In response to FIP’s second demand, the TAPRC Board stated on March 25, 2011 that it would call the meeting to address all the agenda items presented by FIP.  However, the TAPRC Board did not live up to its word, and subsequently decided, again without justification or substantiation, to refuse FIP’s request. When FIP realized that the TAPRC Board was going to once again refuse to act in accordance with the TAPRC’s own articles, FIP called its own special general meeting for July 8, 2011.

TAPRC proceeded  by calling another meeting on June 4, 2011 and misleading the members of TAPRC, by informing them repeatedly that this was the “One and Only Official Meeting,”, thus discouraging the members from attending or otherwise participating in the July 8, 2011 meeting called by FIP. The TAPRC Board then denied FIP entry to the very meeting that was supposedly the only “official meeting,” despite the fact that even the TARPC Board had previously agreed, in writing, that FIP was a TAPRC member in good standing. The TARPC Board then attempted to block FIP’s July 8, 2011 meeting by filing yet another injunction petition.

Despite the TAPRC Board’s subsequent attempts to confuse the issue, the Court in First Instance ruled on Wednesday that FIP is a member who was entitled to legally schedule the meeting of July 8, 2011. This means that the TAPRC Board illegally refused on two occasions to adhere to the demand of FIP as a member of TAPRC to call a special meeting of members, to address several pressing issues.

“The ruling of the Court in First Instance on St. Maarten is a victory for all members who seek to safeguard their democratic right to have the Board of TAPRC actually convene a special general meeting and address subjects that the members deem important, such as: the outrageous amount of legal claims and court cases, the skyrocketing legal fees, and the dubious and possibly fraudulent transfer of all assets of the Pelican Resort Club the Owner Company, the former proprietor of the resort, to the so-called special interest foundation SBBPRC, for nothing,” the FIP leadership stated in a press release.

“Once again, the present Board of TAPRC has been called to account by the Court of First Instance. Just last month, the Board of TAPRC was ordered to inform the members that it incorrectly informed them not to pay their possible balance under their timeshare purchase agreements to the New Owner Company, but instead to the new special foundation SBBPRC established and controlled solely by the present Board Members of TAPRC.”

“Members of TAPRC who have a timeshare right at the Simpson Bay Resort & Marina and The Villas at Simpson Bay are strongly encouraged to exercise their right to vote. Only together can we put an end to Countless Acts of the present TAPRC Board that violate the needs and welfare of the timeshare members, which could only be described as madness. Members who have not voted are encouraged to do so by downloading a proxy from at www.simpsonbayresort.com and submitting it prior to the July 8, 2011 Special General Meeting.  Members with any questions may also contact resort staff toll-free at 1-800-791-4416 or by email at info@simpsonbayresort.com.”

The meeting will be held  Friday, July 8, 2011 at the resort and with this current verdict members can now participate in the democratic decision making process. A second meeting has been tentatively scheduled for July 11, 2011 as a backup date if a quorum is not reached on July 8, 2011. FIP understands that the special general meeting will be broadcast live on the internet.

“The future well-being of the members, the employees, concessionaires and resort is at stake and all members are emphatically encouraged to participate in this important election. Members are advised that the chairman of the meeting of July 8 and July 11, 2011 may accept proxies up to the start of the meeting at 9:00 a.m. on July 8 and July 11,” the statement concludes.

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