Excel fails to hold AGMs in Beverly Hills Club

Excel fails to hold AGMs in Beverly Hills Club

Investors this past week have been receiving notifications from Excel Hotels & Resorts that it has been impossible to hold the AGMs for some of the investment companies in resorts such as Beverly Hills Club.

Excel, as the “administrator” or sole director, of these companies has failed to organise a quorum, the minimum number of share holders that must be present to make the meeting valid.

Who are the shareholders in these companies?

  • Many owners have handed back their shareholdings to Silverpoint, which is being run by the court appointed administrator as part of a deal by which they become creditors in the liquidation.
  • Other shareholders are private individuals that have chosen not to delegate their votes to Excel. The reason is the clear conflict of interest – Excel are supposed to be caring for the shareholders interests, while at the same time are in charge of running the resort which benefits from paying the investors as little as possible.

Without the necessary quorum, the companies cannot approve new rental contracts with the resort. This is not a bad thing. We are aware that the resort is trying to exploit properties based on a restrictive 10-year contract that offers very little net return to the owners.

Should I delegate my vote?

We ask owners to exercise extreme caution if they are invited out to Tenerife for free or discounted holidays. Excel could use this opportunity to pressure shareholders to delegate their vote to the hotel. With enough votes in each company Excel could approve the unpopular 10-year rental contract.

If you own a participation in an investment company in Beverly Hills Suites or Palm Beach Club and are in doubt as to what to do with your vote, feel free to contact The Nordic Consulting for advice.

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