TarheelTraveler

I really don't want to start a debate on this issue, but all of the UE talk got me wondering about how clubs compare generally when it comes to mergers. Mergers have been and will continue to be a regular part of the DC industry, so I think it's something we all need to think about as current or prospective members. I think it will be hard to make generalizations because much of it is dependent on the legal documents, and theoretically, a non-equity club, for example, could put the same types of protections in place as compared to a typical equity club, but I'm curious as to what the deal is now with most clubs.

A side issue is alignment of interests which governor raised in another thread. I've not thought about it extensively, but it does seem like you have some potential conflicts with the way many DCs are set up. DCs are often compared to country clubs, but country clubs in my experience are typically non-profit entities, have a Board of Directors made up of members, meetings that you can attend if you did want to be involved, you can often find out what management is paid, and management is typically not profiting from the club assets down the road, etc. Some DCs have all or some of these characteristics, but I think it varies.

A few general questions:

What sort of approval by the members is required for a merger?

Do you get detailed information on the transaction itself, including what management is getting out of the deal?

With whatever structure that is in place, do you feel the interests of the members are truly aligned with management in a merger and generally speaking on other issues?