SEC forms team to probe erring exclusive clubs

The Securities and Exchange Commission has formed a team to look into complaints filed against a number of exclusive recreational and sports clubs which have been charging prohibitive fees.

The team is composed of Justina Callangan, who heads the Corporation Finance Department, Jose P. Aquino of the Markets Regulation Department, Emil P. Aquino of the Non-Traditional Securities Department, and SEC general accountant Roberto Manabat.

SEC chairman Lilia R. Bautista said the Commission has been receiving a lot of complaints from the public against several leisure clubs which have been charging monthly fees when there are even no facilities to offer just yet.

Investors have complained about the failure of these leisure clubs to meet their timetable for completion of recreational facilities. As a come-on, membership clubs make promises to offer various ammenities to the public like swimming pools, sauna, golf courses, basketball courts, gym, and other sports facilities.

Another problem cited is the charging of transfer fees by these clubs once a shareholder or member decides to sell his shares to another.

Recreational clubs are comprised of groups of individuals who share common recreational pursuit. Many clubs offer quality instruction for people of all skills levels but the main focus is to provide a socialization experience for the community.

Membership in a club is open to anyone in a community. The organization of the club may be structured or casual, it may incorporate competition, instruction, and fellowship, or any combination. The key to the success of a club is leadership, interest, involvement and participation.

In order to avail of the facilities of exclusive social clubs, one must apply for membership by subscribing to shares being offered by these clubs. These shares must be registered with the SE before they are issued to the public.