As recently reported, Palm Beach Club participation owners are being asked to hand over their proxy votes for AGM meetings. In the case of investors who purchased whole companies, Excel Hotels & Resorts, S.A. is asking the sole owners to approve the decisions normally made at this meeting by signing a document called “Acta de Consinación de Decisiones de Socio Único”.
Some of our clients have been told that unless they sign this document fines will be incurred at the Spanish tax office – and this is justification enough to “sign all pages, scan and send us back quickly and then send the original as soon as possible”.
The only problem is that by signing all pages the company owners approve both the management of the company and the annual accounts, which owners may not wish to do. We believe that there is an inherent conflict of interest between apartment owners and the resort management company.
Palm Beach Club appeared to be running well in 2019, but the accounts for the company we saw documentation for posted a LOSS of €4,938.52 for 2019. This is versus the PROFIT the company made of €11,452.60 in 2018. There was no explanatory management report presented with these accounts.
Please make sure that you have proper legal representation and fully understand the documentation before signing anything. If in doubt, feel free to contact us with copies of the documentation you have received and our lawyers will contact you to explain.
We highly recommend our experienced lawyer Luis Sánchez García-Yanes and his team. Luis has been working on behalf of Palm Beach Club investors for several years now and he will be able to represent your interests independently.