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Nuwara Eliya Golf Club | What next?

09 Oct 2020

-- The Special General Meeting (SGM) of the Nuwara Eliya Golf Club (NEGC) proceeded as scheduled on 19 September, with the Judge at the District Court (DC) of Nuwara Eliya refusing to issue the enjoining order to stop the SGM. It was on 14 September that three plaintiffs, namely D. S. Abeyewardene (myself), Rev. L. S. Joshua, and K.M.A.Waheed Mohamed from Nuwara Eliya, filed a petition in the District Court Nuwara Eliya seeking an enjoining order to restrain the holding of the SGM on 19 September 2020 based on the fact that a rule in the Constitution via Clause 2(e) which had been violated cannot be retrospectively passed after the funds have been spent exceeding Rs. 500,000. The DC Judge refused to consider the request of issuing the enjoining order to halt the SGM from taking place on 19 September, where the NEGC Committee was to convene to pass a resolution to “retrospectively” approve funds already spent on the construction of 12 new rooms that was speculated earlier which is now found to be a new 'annexe'  comprising a hall, sitting room, pantry kitchen etc. The Judge issued notice of the action to the defendants to be served to hear the plaint made against the defendants and fixed a date on 15 October 2020, for the defendants to appear in Court. Although Ranjan Gooneratne wrote a letter of demand to the Committee claiming that the SGM be not held as it is a violation of the Constitution – “sine die” – and the SGM is illegal and void ab initio (the SGM is dead from the beginning because the violation of Clause 2(e) is very clear; the Committee cannot spend in excess of Rs. 500,000 without calling an SGM and getting the approval of the members prior to spending club finds. And you cannot give life to what is already dead). Furthermore, Priath Fernando had communicated directly with the NEGC Secretary & General Committee on the issues of the SGM passing a Resolution with Retrospective effect. Notwithstanding the request from Ranjan Gooneratne, the Committee proceeded to canvas proxies and arranged a coach to carry NEGC members living in Colombo (approx. 40 members) on NEGC account to attend the SGM. In addition to that, 300-plus proxies were canvassed and stuffed into the box 48 hours prior to the SGM as specified. The anomaly was that the hall was full with no spare chairs available – a random head count by the first plaintiff counted over 130 persons in the hall during the meeting and the voting. The second plaintiff, a reverend member, was surrounded and stifled by unidentified persons in threatening persona, in the likes of deserters of yesteryear. The total membership is in excess of 1,500. The proxies counted were not verified by the membership for transparency. The proxy bearers had vested interest to pass a resolution illegal from the beginning in violation of the Constitution, passed to justify expenditure violating the rules. Many other discrepancies have surfaced; the construction of the new office premises built during 2019 has been done without prior approval of the building and the Nuwara Eliya Municipality has issued a letter dated 2 July 2020 imposing a penalty of Rs. 492,260 for constructing without the approval of the building plan. The expenditure of up to Rs. 40.8 million as per the approval sought retrospectively in the SGM notice has been spent and handled in cash by an outsourced company representative identified as an outside audit firm, owned by a member of the Committee, which is another violation by a committee member benefitting and working with vested interest drawing fees of up to Rs. 150,000 per month from the NEGC. Rumours are rife that even apartments have been built for some prime members of the Committee as part of the expenditure incurred for the new rooms constructed. Sadly, the CID (Criminal Investigation Department) entry made has had neither response nor investigation, with the Nuwara Eliya Police HQI (Headquarters Inspector of Police) seemingly undeterred by a complaint to investigate by a helpless NEGC member. How will justice ever prevail? So, since the majority present assisted the Committee to bulldoze and illegally pass an illegal resolution at an illegal SGM, the NEGC defenders withdrew the case filed, on 22 September 2020 in the DC Nuwara Eliya, reserving the right to file a fresh application as required since the original plaint request was to restrain the SGM from being held and thus avoid the gross violation of giving life to a rule that was already dead. The fact of violating the rule cannot be changed. Justifying the error or disregard of the law may have consequences beyond comprehension to the unsuspecting members of the club. Observation from the SGM shared by Abeywardene
  • When the SGM was convened, the President called the meeting to order and requested the Secretary to read the notice of the SGM
  • First plaintiff in the case on behalf of the NEGC defenders, rose on a point of order and claimed that since the AGM held on 15 August 2020 was adjourned abruptly without a date, the life of the Committee had ended on 15 August 2020, which was allowed under special circumstances being published in the newspapers due to the Covid-19 lockdown from March to May 2020. Thus claimed that there is no President and that (Retd.) Maj. Gen. Srinath Rajapakse cannot preside and that the Trustee present Mahanama Perera should preside and take over as legally explained in the letter delivered by courier from Ranjan Gooneratne
  • The Constitution Clause 2(c) specifies that the AGM and election of new office bearers shall be held each year before 30 April of each year. Thus the Committee not elected at the AGM on 15 August 2020, determines that there is no Committee in office after the extended date beyond 30 April of 2020
  • It was also placed before the house that since a case has been filed under SPL/302/20 seeking the restraining of holding the SGM has been fixed for notice of action on 15 October 2020, it would be “sub judice” to discuss  matters before the court openly
  • The President occupying the chair despite objections from the floor, invited Mangala Niyarepola introduced as the attorney representing the NEGC and Committee to respond
  • Mangala Niyarepola cited rule 41 to be read with Clause 2(e), and misled the members present in to believing that the SGM is legal and that the majority of the members present and the proxies from members not present are enough to give the Committee the mandate to approve retrospectively cash spent prior to obtaining approval from the membership at an SGM
  • Another member from the floor responding stated that rule 41 can be visited only if the rules are silent on a matter, but in this case the rule was clear that Clause 2(e) was violated by the Committee spending nearly Rs. 40 million without holding an SGM prior to spending
  • Other member attorneys supporting the Committee spoke in favour of approving funds retrospectively, stating that the Committee has by oversight not obtained approval and now it should be resolved without going to court
  • A counter response made was that the doubts and controversy that there has been misappropriation of funds due to vastness of the sums involved without obtaining approval and as such doubts of the integrity of the transaction will always be unanswered
  • The consensus suggested amidst cross talk and arguments was that an independent audit to investigate into the construction of the new rooms and the expenditure incurred should be done independent of the committee members
  • The overwhelming atmosphere that prevailed to bulldoze the irregular resolution was passed by the house. The President continuing in the chair announced that there were 96 members present and that 76 voted for, with nine voting against and three abstaining. 316 proxies for and one proxy against was announced by the Chair
N.B.: Edits and additions made for the original article published on The Morning Epaper of Friday 09 October as pointed out by the responder reflected in bold text


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