Dear Royal Birkdale Members
At a recent SGM, members approved the resolutions to appoint a Chair of Council and the New Governance Structure. Following approval of the resolutions, the Club needed to amend the current rules and Council appointed a sub-committee to carry out this task.
The subcommittee's objectives were the following:
To amend the rules to allow the Club to operate with a Chair of Council and the new Governance Structure
To amend the rules governing the Trustees
To tidy up and amend/remove rules that were no longer current
At the same time, the sub-committee was asked to consider adding/amending rules to allow members to vote remotely at general meetings. This matter was given careful consideration and it was agreed that in the modern world postal/online voting is used extensively and the Club should offer this service to members.
Council also agreed with the Treasurer to change the rule (13g) on subscriptions increases to reflect CPI rather than RPI, see explanation below.
The new rules were presented to Council and approved at the Council Meeting dated the 4th of October.
The Club would now ask members to read the new rules (PDF) or click here to view by flipbook. Members are welcome to make any comments; we ask that all comments are sent to the Managing Secretary by 5 pm on Sunday 17th October 2021.
Once we have received the comments, amendments will be considered before notice will be given for another SGM for members to vote on the proposed new rules. We are hopeful that this date will be Saturday the 4th of December at 5 pm. This date will be confirmed in time for members to receive six weeks’ notice, in accordance with rule 10 (b).
The current rule 13(g) states that “Council may increase the entrance fee or annual subscription payable in any year by no more than 10% or 2% in excess of the increase in the Retail Prices Index over the previous twelve months whichever is the less without recourse to the members in General Meeting.”
In recent years, the Government and Office for National Statistics (ONS) have moved to the Consumer Prices Index (CPI) measure. Whilst the principles are similar, there are differences in the way that they are derived and RPI is more heavily influenced by house prices and interest rates.
The RPI is no longer an official National Statistic, although it continues to be calculated and reported as part of ONS statistics currently.
Looking at the history of CPI versus RPI over the last three years, the reported CPI has been on average 0.8% less than RPI, although has deviated between 0.3% and 1.8% different. Over a 10 year horizon, the differential has been similarly around 0.8%.
In order to retain an equivalent level of percentage increase flexibility to the current rule, whilst reflecting the more modern CPI measurement, the draft rule now makes reference to CPI rather than RPI and “3% in excess of the increase” rather than the current 2%. It should be emphasised that this is purely to reflect that CPI is generally lower than RPI as outlined above, rather than trying to create additional subscription increase flexibility. For example, if RPI was 2% and the CPI was 1% then under the current rule the increase would be limited to 4% (2%+2%) whereas under the new rule it would similarly be 4% (1%+3%).