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Dear Fellow BVC members,
I just cannot emphasize enough how IMPORTANT this coming AGM on the 25.9.2010 –MOTION for a Vote of No Confidence against the Trustee. Liaison Committee (LC) posted this question to the Trustee: Where is the “due diligence and vigilance” (as per the Trust Deed) that the Trustee was supposed to exercise in carrying out the alleged duty to approve the Annual Maintenance Fee (AMF) increase of more than 5%?
Until today, Trustee cannot disprove LC conclusion that the Trustee decision does prejudice the Interest of BVC Timeshare members. Trustee cannot simply decide on the % increase to the detriment of Timeshare members!!! Any decision must be supported by evidence in a Relevant, Rational, and Logical manner. Trustee sending an Officer to BVC to test check some expenses and expect LC to accept is irrational. Comparing BVC maintenance fee with other Timeshare Operators is irrelevant since all Timeshare Operators run their businesses differently. Using BVC reason to initially justify AMF increase of 25% by using the past AMF increase and average it over a period of 18 years since inception to show below 5% is irrational and illogical; it appears as if BVC forgotten to increase AMF for some past years and want to make it back now! Since inception of BVC, members have increased many folds to 19,000 members and Yearly Maintenance Fee ballooned to about RM 6.0 million now. AMF increase is about matching the Yearly Revenue with Yearly Operating expenses and certainly not the irrational and illogical reason of averaging past AMF increases as justification.
Until today, Trustee cannot properly justify the AMF increase in a Relevant, Rational, and Logical manner! Trustee just thinks they have the power to decide as shown in their letters of reply. Full Stop. Have Trustee forgotten their duties stated in the Trust Deed…” overseeing the Rights and Interests of the Timeshare Members”? (Please read the full Reply Letter to Trustee dated 26.8.2010- google BVC Liaison website).
BVC Members will be setting a worrisome Precedent if we Do Not Vote to support the MOTION. There are serious implications. In the future, whatever the percentage the Trustee decides to increase on the AMF increase would be their final word. Let me explain the current implication using the Esteem member AMF increase that the Trustee had approved two years in a row increase of 13% per annum. At 13% per annum increase, it takes less than 6 years to double the amount of the current fee of RM 330 to RM 660. BVC said at the last LC meeting that they have the right to increase 5% per annum (without Trustee approval) and they can do it every year. But this will take BVC 15 years to double the current fee of RM330 to RM 660.
If members allow the worrisome Precedent to happen, no one can guarantee that down the road we won’t be paying maintenance fee that is double the current amount of RM 330 to RM 660 per annum or maybe even RM 1000 per annum or more. Do you still feel the pain of the loss of additional benefits stated in the Sales Prospectus? Even in black & white, it states…Right to Add or Substitute and the words Remove Resorts was not in the Sales Prospectus. What happened now- we are feeling the loss of the additional benefits that they promised us which are all now removed. So, how can anyone guarantee anything to us now?
I urge you fellow BVC members, please make a Special effort to attend the AGM on 25.9.2010 to support the MOTION – you now know the implications of this worrisome Precedent, so please show your support.
Sien Chu Chow
BVC LC Chairman 2009/10
(Thursday, September 16)
p.s. (Trustee and BVC did not include MOTION in Notice of AGM for reasons best known to them despite official request at last LC meeting. Don’t you think, the action is rather high handed?).
Here’s the link (click Calendar date 25.9.2010) for the map to the AGM posted at our BVC Liaison website:Calendar/Map
Here’s the link for you to read the MOTION for AGM_25.9.2010_Final:
MOTION
I just cannot emphasize enough how IMPORTANT this coming AGM on the 25.9.2010 –MOTION for a Vote of No Confidence against the Trustee. Liaison Committee (LC) posted this question to the Trustee: Where is the “due diligence and vigilance” (as per the Trust Deed) that the Trustee was supposed to exercise in carrying out the alleged duty to approve the Annual Maintenance Fee (AMF) increase of more than 5%?
Until today, Trustee cannot disprove LC conclusion that the Trustee decision does prejudice the Interest of BVC Timeshare members. Trustee cannot simply decide on the % increase to the detriment of Timeshare members!!! Any decision must be supported by evidence in a Relevant, Rational, and Logical manner. Trustee sending an Officer to BVC to test check some expenses and expect LC to accept is irrational. Comparing BVC maintenance fee with other Timeshare Operators is irrelevant since all Timeshare Operators run their businesses differently. Using BVC reason to initially justify AMF increase of 25% by using the past AMF increase and average it over a period of 18 years since inception to show below 5% is irrational and illogical; it appears as if BVC forgotten to increase AMF for some past years and want to make it back now! Since inception of BVC, members have increased many folds to 19,000 members and Yearly Maintenance Fee ballooned to about RM 6.0 million now. AMF increase is about matching the Yearly Revenue with Yearly Operating expenses and certainly not the irrational and illogical reason of averaging past AMF increases as justification.
Until today, Trustee cannot properly justify the AMF increase in a Relevant, Rational, and Logical manner! Trustee just thinks they have the power to decide as shown in their letters of reply. Full Stop. Have Trustee forgotten their duties stated in the Trust Deed…” overseeing the Rights and Interests of the Timeshare Members”? (Please read the full Reply Letter to Trustee dated 26.8.2010- google BVC Liaison website).
BVC Members will be setting a worrisome Precedent if we Do Not Vote to support the MOTION. There are serious implications. In the future, whatever the percentage the Trustee decides to increase on the AMF increase would be their final word. Let me explain the current implication using the Esteem member AMF increase that the Trustee had approved two years in a row increase of 13% per annum. At 13% per annum increase, it takes less than 6 years to double the amount of the current fee of RM 330 to RM 660. BVC said at the last LC meeting that they have the right to increase 5% per annum (without Trustee approval) and they can do it every year. But this will take BVC 15 years to double the current fee of RM330 to RM 660.
If members allow the worrisome Precedent to happen, no one can guarantee that down the road we won’t be paying maintenance fee that is double the current amount of RM 330 to RM 660 per annum or maybe even RM 1000 per annum or more. Do you still feel the pain of the loss of additional benefits stated in the Sales Prospectus? Even in black & white, it states…Right to Add or Substitute and the words Remove Resorts was not in the Sales Prospectus. What happened now- we are feeling the loss of the additional benefits that they promised us which are all now removed. So, how can anyone guarantee anything to us now?
I urge you fellow BVC members, please make a Special effort to attend the AGM on 25.9.2010 to support the MOTION – you now know the implications of this worrisome Precedent, so please show your support.
Sien Chu Chow
BVC LC Chairman 2009/10
(Thursday, September 16)
p.s. (Trustee and BVC did not include MOTION in Notice of AGM for reasons best known to them despite official request at last LC meeting. Don’t you think, the action is rather high handed?).
Here’s the link (click Calendar date 25.9.2010) for the map to the AGM posted at our BVC Liaison website:Calendar/Map
Here’s the link for you to read the MOTION for AGM_25.9.2010_Final:
MOTION
