by Susan Edmunds
The PAA is working through the process of setting up its Holiday Home Legacy Trust, which will administer the $2 million proceeds of the sale of the association’s holiday homes in New Zealand and Australia.
The scheme had become untenable because the number of members holding credits far outweighed the number contributing.
Dealing with the proceeds is one thing the PAA must do before it can be wound up, in favour of Financial Advice NZ.
Member Geoff Wilson said it was distasteful that the PAA had sought its own legal representation to set up the new trust but was not adequately compensating those who had paid into the scheme.
He wanted a system set up to recognise the contribution of members who had paid for credits over many years. That could include subsidies for association fees, he suggested.
He had asked the association to fund advisers to seek their own legal opinion on their position and the new trust deed.
Chief executive Rod Severn said, in response, that it had been decided that as the PAA had sought and obtained membership approval through the process, "[and] the board has been steadfast in its decisions... the PAA will not be agreeing to your request for funding. We have been back and refined the trust deed at considerable time and costs to ensure we have covered off all the issues raised. This was the right thing to do and we feel we have taken the right advice to get us to this stage."
Severn said members elected their board to handle such decisions.
"If members wish to challenge the considered position of the board, and the majority of members that have supported those decisions in the past, it is only fair they take that advice independently and fund it themselves. However, should you wish to pursue your option of independent advice, we are happy to have our legal counsel available for them to discuss any issues with."
The PAA is holding another vote on the establishment of the trust on Friday. Its previous deed was voted down, including by board members.
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