Document Number SOP 1000.
Revision Number N/A
Effective Date 12/12/2015
Document Title
Hangar Syndicate Share Sale/Purchase
Prepared By Bob Finch
Revised By N/A
Print Date 15/11/2015
Date Prepared 15/11/2015
Date Revised N/A
Date Approved 11/12/2016
Approved by HRFC General Meeting
Policy:
To establish a Standard Operating Procedure for the sale or purchase of HRFC Hangar Owner’s Syndicate Shares.
Purpose:
To ensure that an agreed standard process is in place to create an orderly and effective transfer of Syndicate Membership between HRFC Members.
Scope:
This process affects all Hangar Owner Syndicate Members and potential members.
Responsibilities:
1/ All members of a HRFC Hangar Owner’s Syndicate must adhere to this procedure should they wish to sell or transfer ownership of their Syndicate Membership.
2/ Any HRFC Member wishing to purchase a share or in any way join one or more of the HRFC Hangar Owner’s Syndicates must adhere to this procedure.
Definitions:
CCC: Cessnock City Council – Owner of Cessnock Airport and the land on which the hangars are situated.
HRFC: Hunter Recreational Flying Club Inc. – The body licenced by CCC to operate and manage activities on a designated portion of CCC land at the Airport.
Syndicate: The relevant Hangar Owner’s Syndicate and all of the members there of.
Procedure:
1/ A Member wishing to sell or in some other way transfer ownership of his/her Syndicate Share will first notify all Members through the Syndicate Manager who will also notify the HRFC Committee. NOTE: Existing Members of the Syndicate have right of first refusal to buy the share and all Members must agree to the transaction.
2/ If no one from within the existing Syndicate wants to purchase the available share or no decision is made within seven (7) days of notification, the share owner can then advertise the sale of his/her share within the wider community – At this point it should be noted that anyone wishing to join a Hangar Owner’s Syndicate MUST be and MUST remain a full and financial member of the HRFC to gain and retain Syndicate Membership. (Refer to the HRFC’s Constitution, CCC/HRFC Licence Agreement and the Syndicate Agreement.
3/ Once a potential buyer is found and an “in principal” agreement between the Seller and the potential buyer has been achieved, the buyer is to be introduced to the other Syndicate Members (if not already known to them) for the purpose of discussing and agreeing all terms and conditions of the Syndicate Membership.
4/ When all terms and conditions have been discussed and agreed, a copy of the Syndicate Agreement is to be completed in full and duly signed by all of the Syndicate Members and the prospective buyer.
5/ At this point a copy of the signed agreement is to be presented to the HRFC (via the President or Secretary) for review and approval by the Club Committee. The purpose of this review is to confirm compliance with all rules and regulations in regard to the transfer of ownership. If it is found that the process has not been followed, approval will be denied until compliance is achieved. If the process has been followed and all documentation is in order, the HRFC committee will approve the sale and the transaction can be completed. Only at this point should money change hands and the buyer issued with a Bill of Sale (or other proof of ownership).
6/ When the transaction has been completed, the Syndicate Manager will notify:
a) The HRFC Committee who will in turn update the Club records,
b) The CCC who will update the Council’s records and
c) The relevant Insurance Broker/s to ensure that all insurance policies are current in regard to hangar ownership.
Effectiveness Criteria:
Compliance with references listed below.
References:
CCC/HRFC Licence Agreement
HRFC Constitution
Hangar Owner’s Syndicate Agreement Hangar Building Agreement Revisions:
Nil at this time.
Graphical Description (If Applicable):
Attachments:
List any attachments that form part of this procedure