KOWLOON CRICKET CLUB. Minutes of the EGM held at the Sports Hall on the 12 th October 2017 at 6:30 pm.

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1 KOWLOON CRICKET CLUB Minutes of the EGM held at the Sports Hall on the 12 th October 2017 at 6:30 pm. The President and Chairman of this Extraordinary General Meeting, Mr. David Brettell (DB), opened the meeting and on behalf of the GC warmly welcomed attendees. The President advised the Minutes of the EGM held on the 10 th November 2016 have been circulated and requested a proposer and seconder. Proposed by Mr. Gordon Lok (L217). Seconded by Mr. Burji Shroff The President received the following apologies from Members: Daniel Davern Mike Dowie Frank Chen Neville Shroff Chadwick Chen Lani Khemaney Ramon Harileza Victor Mo William Wu Abbas Madar Tony Lui Richard Anderson Mani Vachha Nimish C. C. Chen Nozomi Mukai Brian Dowie The President reminded Members that resolutions put before an EGM are Special Resolutions requiring 75% in favour for the resolution to be approved. Each Member has a ballot paper and he reminded Members to place a cross and not a tick in the box of your choice. Proxy ballot papers should be marked in the same way or they will be considered invalid. He then introduced the two resolutions. 1. The first is an amendment to Article 3 of the Club s Articles, to delete the number 2000 and substitute this with the number 2200 which will allow an increase in the number of Page 1 of 6

2 Members of the Club to He emphasised that this increase of 200 members was solely for the purpose of allowing additional Ordinary Voting Members (OVM) into the Club. He explained that the Home Affairs Bureau has requested that the Club changes Article 49 in relation to the sale and transfer of Corporate Memberships to reduce the likelihood of these memberships being used as speculative instruments. The requested restrictions will be required of all Sports Clubs. 2. The second simply a change to Article 53 (g) relating to the commitment period required to be completed by Sports Subscribers (SS). The Change is to delete the word third and substitute the word fourth in its place. This change will affect all future Sports Subscribers admitted to the Club. The President provided his view of KCC as a Sports Club which started out as a Cricket Club which expanded to other sports, i.e. Tennis, Lawn Bowls, Hockey, Squash and Football. He encouraged all Members to read the Centenary Book which was produced which provides a thorough history of the Club, its members, its sporting achievements not only representing KCC but also Hong Kong at the various sports. Our tradition as a sporting club continues to be a very important part of life at the Club. He has a vision of the Club continuing to be a premier sports club in Hong Kong. He asks Members to look at the long term view of the significance of the decisions we make today. The President referred to a note he sent to Members providing further explanation of the first resolution. There are hard copies available and he hopes Members read the explanation. He went on to explain that the total number of members does fluctuate based on admissions and resignations, absent members and etc. He further explained that it is not expected that the additional 200 members would be admitted immediately but would increase slowly during the next few years. The Club needs to retain sufficient places for Sporting Subscribers (67 at present) to become Ordinary Voting Members at the end of their commitment period. The total number of members today stands at 1985 but that the total has only increased by 25 over the last two years. If this resolution is approved, the current policy of admitting one or two members from the general waiting list plus one member from the Child of a Member waiting list each month. However if the resolution is not passed, this policy will be reviewed, resulting in an immediate moratorium on new memberships. This resolution has not been proposed to increase the finances of the Club, and the GC recognises that to allow a substantial increase in total membership at this time would place a strain on the existing facilities. Therefore the increase would be gradual allowing the facilities to be upgraded as required. After the Workshop held in August, the GC has agreed that revenue from entrance fees and Corporate transfer fees etc. would be shown in a separate account and used solely for Maintenance and Enhancement of the Clubhouse and facilities and for no other purposes. The Chairman of the Membership Sub-committee, Mr. Jonathan McKinley reiterated that the members of the General Committee were in complete agreement with the proposed resolution. He went on to emphasise our membership ceiling has nearly been reached and that in order to ensure there is sufficient membership places available for the return of Absent Members and our commitment to allow Sports Subscribers to convert to Ordinary Voting Membership at the end of their commitment period. We are not a closed club, but if we do not raise the membership ceiling, we will effectively become a closed club, i.e. one which no longer allows members of the public to join. This will implications at the time of renewing our Lease. Page 2 of 6

3 Jonathan McKinley continued that the new ceiling will allow further improvement of the Club in that an additional 200 OVM members at today s rates would increase revenue by about $45 Million which allows the Club to plan for the next 5 to 10 years with a certain amount of certainty of our revenue which in turn allows the Club to increase the capacity of facilities etc. Jonathan McKinley also reiterated that the Membership Sub-committee will continue to restrict entry of OVM to the current levels. The Chairman of the Maintenance and Development Sub-committee, Mr. Barry Melbourne provided an assessment of the condition of the Club citing that the Clubhouse is an old building and much of the facilities are also old and need to be maintained. For the current financial year, the Club will spend around $20 million on necessary Clubhouse and infrastructure maintenance; and a further $17 to $20 million will be required in the next financial year. The Main Clubhouse has been registered a Class 2 Heritage Building, and as such, the Club has a duty of care to maintain the building. In this regard, there is water seepage into the snooker room and the Club is seeking assistance from the Heritage Bureau through the Maintenance Scheme to help fund the replacement of sewage piping which may be causing the seepage. If the resolution is not approved, some maintenance projects will necessarily be delayed until sufficient funds are available to complete the projects. David Brettell added that as a result of the Workshop in August, the GC is setting up a Working Group to put forward some creative ideas about raising funds for the Club. With regard to the second resolution, David Brettell advise that one of the effects of the change from 3 to 4 years commitment period would, in the short term, slow the rate of entry to OVM. The President then invited questions from the floor. Mr. Gordon Lok (L217): What are the conditions for Sporting Members to convert to OVM please? Jonathan McKinley replied that mature Sporting Subscribers (those who have completed their 3 year commitment period) are assessed that they have met the minimum playing of 75% of regular fixtures during each playing season, and a clear recommendation from the sports section Representative that they have participated in the Section events etc. and that there are no outstanding or existing disciplinary issues or late payment issues. If all is in order the Membership Sub-committee will make a recommendation to the GC to admit the SS as an OVM. He noted that each SS was required to pay an initial fee of $20,000 and pay the full monthly subscription (currently $1400 per month) and that no further fee will be levied upon entry as an OVM. Michael Shum (S521): Please clarify our present financial position and how critical this is compared to a few years ago. The Treasurer, Mr. William Lee replied that the Club still maintains a reasonable balance, even though the Club has been spending a lot on maintenance and improvements in the last few years. But in all other areas the Club has been breaking even (income matching expenditure) and that the Club has not had to break into the General Reserve. However if no new membership entrance fees were available it would have an immediate effect on our cash position. Gordon Lok (L217): He sees that the number of SS is a problem. There are 67 SS presently which will reduce the number of new members from 200, so that there will be less income from the 200 new members. With the present rate of membership increase, the additional 200 will be filled within 5 to Page 3 of 6

4 10 years. There is a conflict between SS and new OVM from the waiting list. If we don t admit any more SS to OVM, will this solve our problem? If not, the Club will have to call for money to pay for maintenance and the army of administrators the Club employs from Members. James Gagnon (G254): He has been a member for 20 years and in that time he has been one of the silent majority until the last AGM. He loves KCC and enjoys being part of the KCC community as it has a wide diversity of sporting events etc. He understands that the deterioration of facilities, but compares this to very nice improvements other Clubs make to attract more usage. Although he is generally in support of the proposals, why just an OVM increase. With the number of OVM admitted to the Club last year the Club should be raising $20M not $4.5M. How is the SS to OVM ratio structured? Can we attract a special pool of younger members who pay the entrance fee by instalments over a period of time? We should look at allowing weekday subscribers and special facilities subscribers. Has the Club carried out a demographic survey? F&B lost $2M over two years, so what steps are being taken to raising revenue and improving the profitability of the operation of the Club? David Brettell responded that he will create a working group to look at all these ideas for increasing revenue which will be proposed to the GC. The average increase in membership has been 22 per year over the last 4 years. He also opined that the Club must maintain its sporting profile and at a high standard. The lease must be negotiated in seven years and we wish to be in a strong position to bid for the new lease. K.C. Shing (S543): With the present financial position, we should not allow any more SS. He agrees that it is good for the Club to have SS but only if we can afford it. Referring to last year s annual report, up to the end of July 2016 the Club had an operating loss. The cash balance has reduced from $45M in 2013/14 to about $15M now. Office Salaries and allowances are $9M this year, but in 2010 it was about $4M. He is therefore worried that Club has very weak financial control, and this must improve. Maria Kwan (Spouse of Member C552): She supports the sports tradition in the Club. In the Clubs Articles, Article 5.1(8) refers to sports, leisure and recreation. The Club should not discriminate against swimmers, Members using the Gym etc. The Club s lease is a Private Recreation Lease not a Sports lease. We must make the facilities available to outside entities and public use. She does not think the lease would focus solely on sports or should include recreational sports not competitive sports. If we use the additional 200 memberships for applicants from the waiting list and not SS, the Club will gain $44M but if we allow 200 SS the Club will only gain $4.5M. This year, the Club has admitted 20 SS to OVM but only 13 from the waiting lists. The Committee must look at the revenue which may be realised in the next few years. Therefore what is the policy for OVM/SS and the number of SS and OVM to be admitted each year? She is also concerned that the pervading view is that OVM s do not play sports. But how many run around the ground, use the gym, swim and do other activities which are not competitive sports? The criteria for SS must be reviewed as we accept average players, not elite players. The balance against revenue must be reviewed. DB responded stating that Ms Kwan s statistics are not accurate. Since January 2013 until the present, the Club has admitted 51 members from the general waiting list and 57 members from the Child of a Member waiting list as well as 79 SS. That equates to about 16 SS admitted to the Club per year. Of the 108 OVM admitted from the waiting lists, only 2 play competitive sports for the Club. Of the 331 Corporate Nominee Members, only 5 play in one of our representative sports. Page 4 of 6

5 Within the six sports, 550 members represent KCC. We therefore have a need for more sports members. If we stop the SS program, the Club will quickly become a social club which is not the vision of the present GC nor the view of many Members. HAB visited the Club in August and during discussions they made it clear that their principle concern is that the Clubs facilitates the development of young sports persons and junior players. The Club initiated the JS program to help facilitate the HAB requirements. But from JS, the players progress to become SS and eventually OVM. In 2026, we will have difficulty persuading the Government to renew our lease if we become a social club. The monthly rent for the KCC lease is $100K, i.e. $500 per member per month. To be allowed to continue using the land at such premiums the Club must promote sports. The Captain of Cricket, Mr. Simon Scanlon continued that under our KCC Constitution, we have a responsibility to use the facilities for the 6 sports and mainly Cricket. 10 of our young cricketers presently represent Hong Kong. Maria Kwan opines that the most popular sports in Hong Kong are Table Tennis and Badminton so that the Club should look at updating the sports of the Club. Many members play these sports and others have an active life style using other facilities in the Club. She contends that most SS are only average players, not top sports persons. She strongly feel that there are too many SS being admitted to the Club and not enough OVM which adversely effects the revenue of the Club. She contends there should be a proper balance between SS and OVM and that SS should only be real elite players. Simon Scanlon contends that for Cricket at least, the SS players are elite players. In addition, to comply with the Governments objectives, KCC started the Junior Subscriber Scheme. This scheme is for young players up to the age of 28 years old. Our JS and SS programs will help the Club justify renewal of our Lease in We are required to allow non-member sporting bodies to use the Club s facilities. Maria Kwan agreed that introducing the JS Scheme is correct, but continued to argue that the Club needs a quota of OVM to SS, but is not saying that the Club should stop the SS program. Simon Scanlon argues that the number of cricket grounds in Hong Kong is diminishing and that KCC must maintain our sports focus or else he believes our Lease may not be renewed. He agrees that a balance must be addressed, but equally so must the sports requirements from Government as well as our financial requirements. Jonathan McKinley responded that since January 2016 we have admitted 40 new members, but only a net increase of 25 (due to resignations etc.). The natural attrition will allow many more new members than 200. Over the last 5 years, 110 OVM have entered from the waiting lists compared to 80 SS converting to OVM. On average, 33% of SS don t continue to become OVM. There is no reason to think this trend will not continue. An SS is not considered a member of the Club so it is not correct to assume that every SS will become an OVM. In respect to the second resolution, the increase of an extra year commitment will further delay the entry of SS to OVM. William Shum (S469): He can see that the Club must maintain our status as a premier sports club, buy with respect to our financial position, where will the money come from? David Brettell responded by reiterating that he will set up a working group to gather ideas for increasing revenue. One of these is that once the changes to Article 49 are approved by Government, the Club would be permitted to sell more Corporate Memberships. Controlling expenditure is another important measure. He expects the Club s financial position will improve in the future. Page 5 of 6

6 Don McNeil (C719): Contends that no one in the Club likes to see KCC sports teams being beaten in any competition by any of our rivals. To maintain a competitive position, the Club needs the SS program to continue. KCC is not a social club or a F&B club, it is a sports club. He sees the new blood coming into the sports will become OVM and become great members of the Club. Iqbal Khan (K245): At 60 years old he is training the Grand Masters Football Tournament in Hiroshima later this month. He trains at KCC, Kings Park and Football Club. He sees our young players, JS and SS training and playing Hockey and Football and sees them being promoted through the sporting spirit of KCC, training hard for KCC and for Hong Kong and hopes Members take this into account when voting. Alex Rego (R233): Sees that the Club is short of money and opines one way to allow an increase in membership is to allow older members to become Life Members thereby allowing the entrance of more OVM. Jonathan McKinley responded that Life Members are still members of the Club and as such would not allow openings for new members. Jim Lyndon (L393): advises that under Article 5.4 he cannot have a say as to the contents of a resolution so unless we change Article 5.4 to a more liberal on so that Members can contribute (before being approved by Government). Because of this, he will agree with Ms. Kwan. So tonight he will vote No, No, No because we have taken his rights away. Ashok Sakhrani (S593): Agrees the club is a Premier Sporting Club but need to look at the reality of finances. At the workshop, various schemes for raising revenue were suggested. And he can see there is great concern about the balance between OVM and SS which must be addressed. He suggests that as long as members have a commitment from the GC that they will review the entrance fees and the financial contribution by SS, this should be sufficient to enable the resolutions to be voted on tonight. David Brettell responded that the GC will take these suggestions into account when reviewing the SS scheme. David Brettell then requested Members to place their ballot paper into the ballot boxes so that the votes can be counted and the result announced. Once the counting of Votes was complete, David Brettell announced that both resolutions were not carried. He expressed his disappointment at the result. There being no further business David Brettell thanked Members for attending and announced the Meeting closed. David Brettell President Peter Fraser Secretary Page 6 of 6

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