We weren’t there for this discussion but do we actually have more than one candidate on the waiting list for this kind of unit? Regds roz and michael

 

From: Ucol-shareholders <ucol-shareholders-bounces@list.king.net.nz> On Behalf Of Alex King via Ucol-shareholders
Sent: Sunday, 15 November 2020 2:13 pm
To: ucol-shareholders@list.king.net.nz
Subject: Re: [Ucol-shareholders] Meeting Notes

 

Further to my orange card regarding sale of the DCC unit.

I think we made a rushed, ill-considered decision when we decided the price to sell A2 to the DCC in the first place.  I was very uncomfortable with it at the time, but did not red-card it.  I think it has since proven to be a poor decision.

I feel the same discomfort now about cancelling the DCC contract and picking a new purchaser.  It feels rushed, ill-considered and like a backroom deal where a couple of people in our group choose a purchaser who will benefit from the sale of a unit at a below-market price.  It seems clearly wrong to me.

If we're going to cancel the DCC contract I prefer we have a concrete proposal in front of us, and we have a substantive discussion at a main group meeting.  I have been asking for this since the issue came up.  Instead, it feels like we are acting as if the decision is already made by seeking a valuation and seeking to talk to one particular prospective buyer.

There are two significant reservations I have about the prospect.  Firstly, we can't release the DCC from the contract without the approval of Kiwibank, who hold security over the sale and purchase agreement.  They would be looking at an increased counterparty risk.  So likely we'd have to leave it until settlement day to cancel the DCC sale and sell to the new party.  Who is going to arrange this?  It will cost us in legal fees.  Why would we bother?

Secondly, I prefer we stick with the concept that buyers choose us, and we don't choose buyers (beyond them understanding cohousing.)

If we do decide to choose a buyer ourselves, I would only agree if there was a fair process.  If we really wanted to only sell to a family, it would be more honest to market it with that specified (if that doesn't breach discrimination laws)  If we don't want to sell to the highest bidder then to ensure fairness we could market it widely, collect bids and then have a vote in the group as we did for the getting along team.

But again why would we bother?  We have enough work to do before settlement without putting another hurdle across the finishing line.

The DCC have told us they will be selling A2.  This is what we need to say to people at the induction.  To say anything different before we've made a decision, and when there have been orange cards raised about the process, would be dishonest.

Thanks,
Alex

On 12/11/20 10:31 pm, Frances Ross wrote:

Please read the notes and come back to me with any amendments.

Frances

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