Interesting article in today's Financial Review...........
It talks about three guys who took over a not-for-profit organisation (with millions of dollars of assets) and over time, converted it into a company, with them as the only shareholders...
Result.....instant millionaires.
I wonder if the leaders of the AKA have read the article?
Comments12
Because the other stake holders didn't take enough interest in what was happening and allowed this to occur.
I am sure Mr Hancock can give us some back ground on this, but the principles of having the right governance and constitution for your organization is imperative.
I'll will ask this question, How many clubs affiliated with the AKA have an inventory of the clubs assets and their worth, along with the location of them? does someone within the club audit that inventory at a regular interval?
Funny you mention that Neville - I was at a Club meeting where the managment hasd called a Special General Meeting to wind up the club and move its assets to a CLG they even had a legal firms solicitors there, I argued against winding up the Inc. club until the new entity was secured as an affiliated group with AKA so that licence holders were not displaced, I also asked what the assets were , and was told "some material equipment bits and pieces" in a rented shed somewhere , I told the meeting that I thought the main assets of any club are its members, and the equipment its owns, like I know they have at least $50K worth of transponder equipment - radios etc etc etc etc and approx - $3.5 million dollars in a trust fund that is at the behest of 5 people, funny how I had to remind people of that ..!!
Now that I have asked some questions , and pointed out some details and requested minutes and constitutions I am the biggest bastard in the world .!!! ..It's got me wondering why ... !! especially when there should not be a need to get agitated over simple requests that members are entitled to ... the link below is interesting to say the least ..
http://afr.com/p/national/easy_dough_from_non_profit_6yW4Fy6WGxmIhY...
I did put forward that this may have been part of reasion for the big push behind the AKA name change, as I have been given no other reason for it.
Yes Ralph.
Everything that is owned by the club is an 'asset' Every member is an asset, but the material things, like weigh scales, flags, timing loop, laptops radio's, etc are assets of the cub that have a worth and a value. They belong to the members of the organization and in the event of the organization winding up there has to be some protection and guarantee that any particular entity can't take possession of those assets and lay claim to them.
Ralph van Doorn said:
Funny you mention that Neville - I was at a Club meeting where the managment hasd called a Special General Meeting to wind up the club and move its assets to a CLG they even had a legal firms solicitors there, I argued against winding up the Inc. club until the new entity was secured as an affiliated group with AKA so that licence holders were not displaced, I also asked what the assets were , and was told "some material equipment bits and pieces" in a rented shed somewhere , I told the meeting that I thought the main assets of any club are its members, and the equipment its owns, like I know they have at least $50K worth of transponder equipment - radios etc etc etc etc and approx - $3.5 million dollars in a trust fund that is at the behest of 5 people, funny how I had to remind people of that ..!!
Now that I have asked some questions , and pointed out some details and requested minutes and constitutions I am the biggest bastard in the world .!!! ..It's got me wondering why ... !! especially when there should not be a need to get agitated over simple requests that members are entitled to ... the link below is interesting to say the least ..
http://afr.com/p/national/easy_dough_from_non_profit_6yW4Fy6WGxmIhY...
No David, just changing the name does nothing at all. It's no different to you deciding to use another name; you are still 'David'.
My 2 concerns were that just changing the name does nothing for the root problem of karting, which is lack of governance and that the name being suggested sounded awfully like the same one the traitors on the NKC were selling out the AKA to in 2005. That one would have seen CAMS end up with the AKA's $2m.
RV, I know you usually chose your words carefully, but as Neville I think implies, what the company did in the AFR article is perfectly legal and when you say $3.5m in trust, do you mean 'trust' as in the TDF or is the money in a bank account and the club is the trustee ?
I guess my fear was that while it was advertised as a "Name change" in reality it may have been far more sinister things going on behind the scene.Graeme Hancock said:
No David, just changing the name does nothing at all. It's no different to you deciding to use another name; you are still 'David'.
My 2 concerns were that just changing the name does nothing for the root problem of karting, which is lack of governance and that the name being suggested sounded awfully like the same one the traitors on the NKC were selling out the AKA to in 2005. That one would have seen CAMS end up with the AKA's $2m.
RV, I know you usually chose your words carefully, but as Neville I think implies, what the company did in the AFR article is perfectly legal and when you say $3.5m in trust, do you mean 'trust' as in the TDF or is the money in a bank account and the club is the trustee ?
Money in a bank and individuals are the trustees .!!! ..a totally different entity to the club Inc. whilst that may secure club committees from rash spending in order to ensure funds for a new facility remain in tact etc etc .... no such facility is on the go now whilst spending on that continues avenue and all attempts have reached dead ends I am told ... might be better to donate some of the funds to local clubs so that the remaining members can at least avail themselves of the facilities such donations would improve ..dunno , ! ...I had also requested a copy of the trust deed but that seems to be being ignored !!......
The concern with any organization is the fact someone or group can take over the existing assets of the club by stealth and redirect or channel them to other concerns.
Indeed Neville.
RV, surely there is a trust deed ? And if not a formal deed of trust, there may be a resulting or constructive trust deed which arises from the manner in which the 'transaction' was conducted. In simple terms, that means there may be a club meeting where the members resolved to make the 2 individuals the trustees for the club's monies and also to 'give' the money to the trustees to hold on trust for the members.
It is not unlike your will; (and if you do not have one, you should) you leave your estate to your trustees upon trust to be divided amongst your nominated beneficiaries.
Graeme
I don't recall " ... the NKC were selling out the AKA to in 2005 .. "
I seem to remember some individuals at an unconstitutional "meeting" tried to GIVE the AKA away ...
I think there were some temporary "directorships" offered until the shareholders (no relation to AKA members) exercised their right to appoint others ...
I don't recall the representatives of over 50% of Australian (AKA) karters being invited to this "meeting" or being given proper notice ...
Cheers
Greg
Graeme Hancock said:
No David, just changing the name does nothing at all. It's no different to you deciding to use another name; you are still 'David'.
My 2 concerns were that just changing the name does nothing for the root problem of karting, which is lack of governance and that the name being suggested sounded awfully like the same one the traitors on the NKC were selling out the AKA to in 2005. That one would have seen CAMS end up with the AKA's $2m.
RV, I know you usually chose your words carefully, but as Neville I think implies, what the company did in the AFR article is perfectly legal and when you say $3.5m in trust, do you mean 'trust' as in the TDF or is the money in a bank account and the club is the trustee ?
Yes Greg, I was using the vernacular of 'sell' when as you say, 5 individuals without instructions from their states were actually giving CAMS $2m for half a dozen director's spots on KAL, all of which could have gone in a month as the CAMS directors were the KAL members.
Utter treachery by 5 so called state representative individuals in the absence of NSW and QLD who weren't even there. And some of those individuals remain in the AKA hierarchy. Karting's lowest ever point by a long shot.
Hey why not take the Australian Karting Survey
Here is the link http://bit.ly/AustralianKartingSurvey
This is a replication of the AKA Survey that was recently sent out to just AKA members and got 1200 responses nationally. It has been replicated so that this can be used openly, by everyone with all results shared openly and also the questions they had in their 'Strategic Planning Document'
So have a say added Strategic questions.
This has taken me 23 minutes to complete and using that link above can be emailed, shared, posted on Facebook/Twitter/YouTube, websites, put on a piece of paper, made into a bumper sticker, put on club newsletters - you do what you like with it, but you can gather the information then all results can be emailed to the people who choose to have it sent to them.
If you want to participate go for it, it is open to anyone...full on competitive people, social karters, hackers, onlookers, AKA members - it doesn't matter, it doesn't discriminate - so go for it, have your say.
If you sit back and don't even respond..well...hey I tried right! Here's the link again in case you missed it http://bit.ly/AustralianKartingSurvey