Singapore Recreation Club members question legitimacy of vote to approve S$16.6 million renovation

SINGAPORE: Some members of the Singapore Recreation Club (SRC) located near the Padang have questioned if a vote to approve the club’s S$16.6 million (US$12.3 million) facelift was legitimate, saying proceedings were a departure from the norm.

To fund the cost of the works, those with transferrable memberships will have to pay a “special levy” of S$3,000. This was passed on Mar 26 after a three-day vote.

However, dozens of members have taken issue with the three-day voting period, alleging that it was an attempt by the club's committee to buttress its upgrading plans by allowing time for more people to vote in favour of the works.

About 50 people have signed a letter that was sent to the club, demanding that the resolution on the upgrading works be cancelled until the club's constitutional requirements are met. 

The letter, seen by CNA, cited three breaches of the club’s constitution and a breach of its bylaws. 

The club responded to this letter on Apr 1 and has rejected the allegations. 

The member, who sent the letter with 50 other signatories and wanted to be known only as Mr Ong, later sent the club a lawyer’s letter.

The club has 7,000 members currently. About 5,000 of them are transferable members who will have to pay the S$3,000 fee. There are also non-transferable memberships such as family or junior memberships, and these individuals will not have to contribute to the renovation fund. 

The renovation includes major works to the club's facade and significant upgrades to its restaurants and activity rooms. New F&B outlets, a co-working space and an outdoor platform with a panoramic view of the Padang and Singapore skyline are also part of the plan. 

According to documents on SRC's website, 1,451 votes were cast from Mar 24 to Mar 26, after an extraordinary general meeting on the first day. After voting ended on the third day, the resolution was passed with a simple majority of 56.93 per cent. 

CNA spoke to more than 10 members, all of whom questioned the legitimacy of the vote, saying proceedings were a departure from the norm. 

The decision to spend S$16.6 million was too hasty, the members said. They added that they only found out about the upgrading works after the club held a town hall on Feb 25, a month before the resolution was put to a vote. 

But discussions among the management committee for renovations started as early as 2022, although other members were not told about this, they said.

“The issue at hand is that all the members, at least in my opinion, were blindsided by these actions,” said one member who has been with the club for about 30 years but did not want to be named. 

In 2022, SRC secured a 30-year, S$17.7 million lease renewal, and members contributed S$2,500 each. According to the club’s management, the sum paid by members amounted to about S$11 million, and the remaining amount came from its reserves.

“And then today you say that because of this (upgrading works), we have to pay another S$3,000. Of course, some members are not happy,” the member told CNA. 

SRC said on its website that members who “opt in” to pay S$3,000 upfront will be rewarded with S$1,650 in F&B credits that can be used at the club's restaurants. 

Those who do not opt in will pay S$250 a month over a year. These members will receive S$1,350 in F&B credits after the full S$3,000 is paid. 

NO QUESTIONS TAKEN AT MEETING

Mr Ong, the member who sent the lawyer's letter to the club, had given feedback on the proposed renovations. He disagreed with some suggestions including the addition of a cigar room.

The management committee has since invited him to join a task force overseeing the proposed designs, he told CNA. 

Adding that he is willing to work with the committee to improve the proposal, he said: “It’s very good that they’re happy to look into the matter … But while we are doing something here, we must know what we are paying for.” 

The members have also asked for the minutes from prior meetings about the upgrading project and video recordings of how the vote was conducted, said Mr Charles Liew, who has been a member for about 30 years. 

“I felt that S$3,000 is a lot of money, so I wanted to throw in the towel and return the membership. But they said I had to cough up another S$5,000 to give up my membership,” he added.

Club members have to pay a transfer fee of S$5,000 or 50 per cent of the transfer price, whichever is higher, if they give up their membership or sell it to someone else.

At the extraordinary general meeting on Mar 24, the management committee did not take questions, which is the norm during such meetings, members said.

During the meeting, one longtime member rose twice to object to the three-day voting period, claiming it was against the club's constitution. Members CNA spoke to said his concerns were “brushed aside” by the management, who said they had already consulted the club’s legal advisers. 

Instead of answering questions at the meeting, the management referred members to an online document with a list of queries they had received about the upgrading works and the club's responses, said the disgruntled members. This document is available on the SRC website and will be regularly updated, according to the club. 

With voting being conducted over three days, members said they were not confident the vote was secure. 

Another member who has been with the club for 30 years and wanted to be known as Mr Tan said the holes in the voting boxes were sealed with a single piece of PVC tape. 

“I’m not saying they’re cheating, but it’s so easy to take out (the tape),” he said, adding that he did not see any management committee members overseeing the voting – only an independent witness and a security guard were present. 

VOTE WAS CONSTITUTIONAL, CLUB SAYS

Speaking to CNA on Monday (Apr 8), SRC's general manager Desmond Tay said the management committee had conducted the vote according to the club's constitution on the advice of its legal team. 

Under its constitution, 150 members have to be present at a meeting for a vote on a resolution, which will be passed if a simple majority is met. 

Responding to criticism about the three-day voting period, Mr Tay acknowledged that voting is usually conducted on one day – the same day as the meeting. About 300 people attended the meeting on Mar 24, he said. 

It was out of "good intentions" that the management decided to extend voting to three days, Mr Tay said. The S$16.6 million sum is a “big investment” and a longer voting period would allow more members to participate in the decision.

“This time round, the committee felt that with such an investment, such funding requirements, it’s only prudent to not just gather all your friends to come here … and get the vote through. We want all the members to participate, to have a say,” said Mr Tay, adding that the management even considered extending the voting period to seven days. 

“So we went through with our legal counsel, they said that the committee can decide on the number of voting days and the voting process.” 

He also responded to members who questioned why the vote was not held during the club’s next annual general meeting, scheduled for later this month. 

“This is a very big topic, it’s a very big thing to discuss and to vote accordingly. We don’t want to mix with the AGM because this year’s AGM also happens to be an election year,” said Mr Tay, adding that the decision to hold a separate extraordinary general meeting was deliberate. 

“If everything all comes together under one day, I don’t think it’s right to make a big decision like this with so many things in one day.” 

The club’s lawyers are currently assessing the legal letter from Mr Ong and preparing a response, he said. 

To address the concerns of some members, especially seniors, who may have difficulties paying the S$3,000 fee, the management committee intends to propose two resolutions at the upcoming annual general meeting later this month. 

It aims to introduce a veteran membership for those aged 65 and above who have been members for at least 25 years, said Mr Tay.

These people will qualify to become veteran members and transfer their memberships to their "next generation" at zero cost, he added. They will then enjoy the same benefits without having to pay any subscription fees. 

On top of the membership fee when they join, members have to pay a monthly fee that differs based on the type of membership they hold. For example, an ordinary member pays S$85 a month. 

In the second resolution, the club plans to propose removing the transfer fees for members who want to give up their membership. 

This will also allow the club to buy back the memberships at an "agreed fee", said Mr Tay, noting that such provisions currently do not exist. 

UPGRADING PLANS STARTED IN 2021

Mr Tay confirmed that plans for the upgrading began as early as the end of 2021. But he rebuked claims that the plans were kept secret among three or four management committee members and that members were not consulted about the plans until late February this year. 

A task force for the project was appointed at least 12 to 18 months ago, he said. This group comprises three members from the management committee – the club’s president, vice-president and treasurer – as well as several regular members who are industry experts in architecture, mechanical and electrical services, building and finance, said Mr Tay.

The task force has conducted a survey among relatively inactive members aged below 40 about what they wanted to see in the renovation. They have also regularly consulted the club’s more than 10 interest groups, he said. 

Several of the SRC members CNA spoke to are members of interest groups at the club, but all said they had no prior knowledge of the upgrading works. 

When asked about public announcements on the project, Mr Tay, who is also the secretary of the management committee, pointed to the club’s annual general meeting in April 2023. 

Minutes of that meeting, published on SRC's website, show that the club’s president Chang Yeh Hong “shared an overview” of the upgrading plan. This includes making changes to the club's facade and adding new facilities and amenities.

“The complete transformation blueprint is being conceptualised and developed, and will be shared with members once finalised,” it said. 

But Mr Tay acknowledged that the estimated cost and how much members would have to contribute were announced for the first time at the town hall in February. 

“If you ask me what is not in consultation with them, it’s of course, to collect money. And I think that’s the main thing that everybody’s not happy about because they need to pay up. But if (we) talk about the design, talk about the plan, it has been known for about 12 to 18 months.” 

This announcement was made after “due diligence” was done to come up with a “proper estimate” of the cost, he said. 

Mr Tay also acknowledged that the club did not post regular updates for members on social media about the upgrading plans. But according to checks by CNA, documents referring to the “transformation plan” referenced in Mr Chang’s speech were available on SRC’s website from December 2023 – starting with a proposed plan for changes to the outdoor area of the club. 

A document from July 2023 announcing an increase in the club’s transfer fees also said it was “the right time” to enable the club to grow its financial reserves for “a major upgrading project for the clubhouse”. 

Between 1994 and 1996, joining SRC could cost up to S$40,000. It now costs about S$10,000 to become a member, and the club aims to raise this to S$15,000 to S$20,000 after the renovation works are complete, said Mr Tay, adding that he observed a slight increase in interest from potential members after the upgrading plans were made public earlier this year. 

When asked for his response to members who were unhappy about contributing money again so soon after helping to fund SRC's land lease renewal, the general manager said the club has about S$10 million in reserves. 

“It is not sustainable for the club to fork out all the money. If we spent every single dollar of the club’s (reserves), the club would go bankrupt very soon,” said Mr Tay. 

The club also drew on its reserves for previous renovation works, which is why some members may think that paying for this round of upgrading is out of the ordinary, he added. 

“All clubs are similar, they need to keep certain reserves to protect the club’s day-to-day operations … It’s not uncommon in this situation, most other clubs when they do renovations they ask for top-ups.”