A lot of uncertainty is hanging over Jurong Country Club’s (JCC) compensation payout for its use as a terminus link for the Singapore KL high speed rail. According to lawyers it is quite unclear as to whether a cut will be seen to thousands of the clubs members.

The Singapore Land Authority informed the club this past Monday that they were to hand over the 67 hectares of land by November of 2016, and would be compensated for the acquisition based on the current market value.

Sol Acres at Choa Chu Kang

Wong Siew Hong, a partner of Eldan Law, stated that the funds for the club, which is registered as a society, is ruled by its Constitution. However, the Constitution has been quiet over the use of these extra funds. Robson Lee, a partner of Gibson, Dunn & Crutcher, explains that this would mean any proceeds must be used in line with the objectives of the club.

These objectives, according to the club’s Constitution, state that, since the club is considered a premier golf and country club, its objective Emerald of Katong is to manage and acquire other resort and golf facilities, and making affiliation or reciprocal arrangements to extend the club’s activities with other clubs.

Jurong Country Club near Sol Acres

Also, at general meeting, Sol Acres club members can also make decisions regarding other activities, as long as these do no go against the club’s Constitution or the wider range of the law.

Mr. Lee states that a natural decision would be to purchase a replacement golf course in this situation. He further points out that members choosing to distribute the funds between themselves is an extremely big decision which the general committee for the club would need to be clear with the Registry of Societies

Considering the club has around 17 different classes of membership, this would be a complicated situation. Of the club’s 2,700 members, 400 of these are of a non-voting class.

Gan Theng Chong, partner of Lee % Lee, notes that should the club be dissolved, its assets are required to be distributed to charities upon dissolution.

Mr Chong feels this is very unlikely since a dissolution for Sol Acres can only take place via the club’s general meeting. A resolution can only occur with 3/5 of the club’s resident members consent and, according to their Constitution, members must Lumina Grand reside in Singapore at the time of the meeting.

Sol Acres MCL Land

It is required by the Constitution that an uncommon general meeting be called in order to answer any questions for ec info, important issues and to allow members to have their say. Working with the authorities, the club has set up a task force.

According to the Singapore Institute of Surveyors and Valuers, it is likely that compensation for this site will be fair and reasonable based on the situation in the market for Sol Acres.