This is about - in the Malaysian context - publc and private (or proprietary) golf clubs. I am interested to hear comments and opinions from anyone about this topic. There is a lot of notes under the 'speakers notes', perhaps if you download the files you can read them.

1. Public, Proprietary &
Members’ Golf Club
The 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 two
more 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 many
types 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) under
the Societies Act.
• One or several of them have to hold
properties on behalf of all.
• Or don’t 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 by
shares)
• Buy land for the golf club
• Can start subsidiaries Just like any other
company
• 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. Comparison
Societies/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 as
itself; but by name of
members
Companies
• 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 wind
up

9. Members vs Propietary
Members Club
• Members own the club
• Members control club
through elected
committee
• Can do trade by providing
facilities to non-members
on a commercial basis
Proprietary Club
• A main proprietor own the
club
• A business with view to
profit
• Burden is on buyer to
protect 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 Club
Membership/Proprietary
• Requires RM5m capital
• Limits to membership
• Must follow guidelines
• Must have prospectus
• Renewable 6 months
• Have liaison committee
• Members’ interest
safeguarded
Public
• Is a business entity
• Limited by physical
constraints.
• No committee.
• Company interest come
first

12. Pro of membership
• If membership well sold; subscription
assures income
• If membership taken up: customer base
• Recession proof
• If membership can be sold to developer
who 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 to
have a say in everything

14. In this topic
• Discussion about differences
• Scenarios of setting up a club
• Comparisons
• Truth about membership and public