At a Special General Meeting held on 4th July 2014, Palm Beach Club passed a resolution purporting to convert the fixed week timeshares held on trust for owners, to a points based floating week system.
The vote was passed by a majority of those present at the SGM and by those who were entitled to vote. Following the resolution (proposed at the instigation of the Club’s agent Silverpoint) a significant number of owners at PBC were upset by the resolution, as they felt very strongly that the resolution is unlawful and the voting has been unfairly influenced
(a) By that fact that Silverpoint have somehow gained control of a majority of timeshare weeks and voting rights;
(b)Many owners were unaware or unavailable to attend (and vote) at the SGM.
Many owners are reporting that Silverpoint are approaching them whilst holidaying, and are attempting to persuade them to transfer to alternative Apartments against their wishes.
What is the legal position at PBC?
Having examined the original purchase agreements, the Club’s constitution and the underlying deed of trust, the position would appear to be as follows:
Owners at PBC purchased timeshare rights, and those rights are held on trust by the Club and the Trustee. The timeshare rights comprise of fixed weeks in accommodation more particularly described in a Trust Certificate and Holiday Certificate which is delivered to each member immediately following their purchase. These documents purport to be evidence of a legal interest in fixed time within specific apartments,
In order to protect the interest of the timeshare owners PBC was established.
The day to day running of the Club’s affairs has been delegated to the Club’s elected committee pursuant to the terms of a Constitution which came into existence contemporaneously with the formation of the Club on 8th March 1984.
We have considered the terms of the Constitution (June 2013) which includes the relevant provisions:
- The Club is non profit making, established to “secure and protect for its Members the exclusive rights of occupation for specified periods of each year….” (Clause 3 – Objects).
- Each Holiday Certificate shall entitle each member to occupy the Apartment for the purposes of a holiday during the Holiday Period in each year.
- The Apartments are defined as those Apartments situated at Palm Beach Club in Tenerife, as more particularly described in the First Schedule of the Constitution (Clause 6).
- The Apartments are registered in the name of Tenerife Developments Limited, who hold the Apartments on Trust for the members of the Club (Appendix 1 of the Constitution)
At the SGM on 4th July a significant number of owners (excluding Silverpoint) voted against the Resolution. The Club (through its Committee) accepted the Resolution, taking into account the Silverpoint block votes. Very serious concerns have been expressed by owners that the proposer of the Resolution is to deprive owners of their timeshare rights and in particular their right to use their fixed weeks in specific apartments. These concerns are against the background of apartments at PBC being advertised for sale on behalf of Silverpoint before the Resolution was passed.
Having carefully considered the terms of the PBC we are of the opinion that the resolution is would be an unlawful infringement of our ownership rights and a breach of contract. It is also a fundamental change to the Club’s Objects and contrary to the interest of the Club’s members.
This being the considered opinion of a leading timeshare legal expert you are invited to join a group of disenfranchised Palm Beach owners to challenge the resolution with a view of obtaining damages and/or the return of you contractual entitlements.
You can apply to join the Palm Beach action group by e mailing
legal@timeshareconsumerassociation.org.uk
Please note that we will be unable to respond to your application for 9 days due to the office being closed however will address all applications on the 3rd of November 2014.
For more information regarding this article or assistance in any other timeshare related issues please contact the TCA on 01908 881058 or email: info@TimeshareConsumerAssociation.org.uk