RSYC FAQs

FAQs on Privileged Membership Issue

1. Is a Privileged Membership Issue the same as an Ordinary Membership?
No. A Privileged Membership Issue is not converted to an Ordinary Membership (Transferable) until it is activated.

2. If I transfer the Privileged Membership Issue to a friend, can he/she subsequently transfer the Ordinary Membership? If yes, how do you determine the transfer fee?
Yes, your friend would have become an Ordinary Member (Transferable) and he/she can transfer his/her membership. He/she shall bear the transfer fee of 20% of the Club's prevailing price of the Ordinary Membership (Transferable) at the time of transfer or such amount as may be determined by the RSYC Committee.

3. If I purchase a Privileged Membership Issue and activate it for a friend, would he/she enjoy the privilege of a "first time free transfer" to his/her immediate family? (When a new Ordinary Member purchases his Membership directly from the Club, the first transfer to his immediate family is free-of-charge.)
No. The privilege of a "first time free transfer" to the member's immediate family is only applicable if the Membership is obtained from the Club directly. In the case of the Privileged Membership Issue, your friend's Ordinary Membership (Transferable) would be a "Transferred Membership through Privileged Membership Issue".

4. Will the Club continue selling other categories of Memberships?
Yes.

5. What happens if we do not nominate anyone to take the Privileged Membership Issue within the designated time frame of 48 months?
If, after the period of 48 months, the member still has not nominated any individual as the holder of the Privileged Membership Issue, then the Member's rights to the Ordinary Membership (Transferable) shall be extinguished and the sum of $6,000.00 + GST shall be forfeited. The RSYC Committee may, in its absolute discretion, extend the validity of the Privileged Membership Issue and determine the extension fees (if any).

6. The Secondary Market price of Ordinary Membership is presently only about $9,000. With the Privileged Membership Issue at $6,000 and activation fee at $3,000, the Privileged Membership Issue is about $9,270 (incl. GST) once activated. This is comparable to the Open Market's price, and perhaps lower, so I would lose money if I bought a Privileged Membership Issue and sold it to someone at the current rate.
The RSYC Membership is a perpetual membership. From an investment point of view, the price of the membership fluctuates over time. The price is currently low compared to recent historical values and it may increase when the economy recovers.

7. What documentation proof will I get for a purchase of the Privileged Membership Issue? E.g. certificate of purchase?
When you sign up for the Privileged Membership Issue, you will receive an acknowledgement of acceptance in approximately one week's time.

8. The secondary market value is currently about $9,000, much less than I paid for my membership. For the Privileged Membership Issue, is the Club able to offer some sort of assurance for the future membership price in the secondary market? Will the club be able to do something to control the price?
The price of the Ordinary Membership (Transferable) in the secondary market is influenced by supply and demand forces outside of the club's control. In a harsh economic climate, prices fall. What the club can do is to look into ways to raise the image and quality of facilities of the club to enhance the value of the membership. When the value of the membership is enhanced, it will increase the demand and the price will increase accordingly. Furthermore, if the economy improves, membership prices may tend to rise.

9. Can I sell my Ordinary Membership (Transferable) and continue to hold on to the Privileged Membership Issue?
No. If you want to sell your Ordinary Membership (Transferable), you would first have to activate your Privileged Membership Issue.

10. Is the Privileged Membership Issue open to public?
No. The Privileged Membership Issue is designed to offer the benefits only to members in the first instance.

11. How many Privileged Membership Issues is the RSYC planning to issue?
Each member is entitled to purchase 1 Privileged Membership Issue. Therefore, if every member takes up the opportunity, the total would be approximately 2000. However, we are anticipating issuing only 700 or so.

12. Are you sure we can accommodate so many members?
Yes, the new club facilities were designed for an optimum membership of 3,500, and we have only 2000 or so active members at the moment.