Sailing boat

The special meeting of the debenture holders has been cancelled.


Special Meeting of the Debenture Holders

December 29, 2016
Royal Hamilton Yacht Club
7:00pm

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Click Here for Letter and Proxy


Opportunity to Purchase Unredeemed Royal Hamilton Yacht Club Debentures

A number of the unredeemed debenture holders have expressed an interest in selling their debentures.

The Debenture Trust agreement clearly allows for such sale or transfer of a debenture. Once such a sale (transfer) is completed, then the new purchaser (transferee) also purchases the right to be a charter member, with all of its privileges of such status, including reduced yearly dues, and additional voting rights, all as set out in the by-laws of the Club. The seller (transferor) would then lose the right to be a charter member of the Club and would lose all privileges of such status. Also, if you purchase an unredeemed debenture, and that unredeemed debenture is drawn by lottery or otherwise redeemed by the Club, then you will receive any money ($3,000.00) from such redemption, as these rights to receive this money would pass from the seller to you as purchaser or transferee.

If you are interested, you may contact the debenture trustee, Paul Vayda, at debenturetrustee@rhyc.ca, and he will provide your name and contact information to all the identified sellers. You will also be provided with the list of the identified sellers. The debenture trustee will leave it to these potential buyers and sellers to contact each other, and you and the seller or transferor may reach whatever agreement that you wish to buy or transfer the unredeemed debenture. In other words, you may purchase the debenture for any price that the seller will agree to.

Once you have struck an agreement, you and the seller or transferor need to fill out the attached form and present it to Paul Vayda or the Operations Manager, who will ensure that the records are amended.

The Club is committed to redeeming all the debentures. By the terms of the Debenture Trust Agreement and Club by-laws, the Club has redeemed debentures every year by lottery. One-half of the yearly profit plus all of the year’s initiation fees are pooled, and used to pay off debentures. At the last annual general meeting, there were 4 Debentures drawn from a pooled fund of $12,000. We are hopeful that more are drawn next year. Presently, there are 86 Debentures still outstanding, at $3,000 each, for a total debenture debt of $258,000. The Club has paid off $378,000 in debt and redeemed 126 debentures since 1984.

Finally, please note there is absolutely no obligation to do anything at all. However, Club dues come due on December 1, so if you are interested in doing such a transfer, then you should contact Paul Vayda as soon as possible.  
Paul Vayda, Debenture Trustee, Royal Hamilton Yacht Club (established 1888) Inc.

debenturetrustee@rhyc.ca

The Relevant Provisions of By-Law #4

2.07 Intermediate Charter Member

  • A person between twenty-five (25) and thirty (30) years of age who has purchased a Charter Member Debenture of the Club and who has paid the prescribed annual dues.  Such person is not required to pay an initiation fee.  Such person enjoys, on an annual basis, Club and Boating privileges.  Such person's annual dues are equal to the annual dues of a “Member” under thirty-one (31) years of age, set by the Board.

2.08 Charter Member

  • A person between thirty-one (31) and sixty-four (64) years of age who has purchased a Charter Member Debenture of the Club and who has paid the prescribed annual dues.  Such person is not required to pay an initiation fee. Such person enjoys, on an annual basis, Club and Boating Privileges.  Such person's annual dues are equal to the annual dues of “Member” less One Hundred and Fifty Dollars ($150.00).  

2.09 Senior Charter Member

  • A person of at least sixty-five (65) years of age who has purchased a Charter Member Debenture of the Club and who has paid the prescribed annual dues.  Such person is not required to pay an initiation fee.  Such person enjoys, on an annual basis, Club and Boating Privileges.  Such person's annual dues are equal to fifty percent (50%) of the Charter Member dues.  

2.12 Voting Members

  • At meetings of Members of the Club, all Members or spouses, as in By-Law 5, 1.04 (b), in the Charter Member categories ….. shall have one (1) vote per membership which shall be counted as two (2) votes.

APPLICATION FOR TRANSFER