The Kristal Golf Resort closes

It was disheartening to read Sunday's Star report (Sunday Star. 29 July 2007). It was reported that the Kristal Golf Resort in Jawi has closed down, leaving some 1.400 golf club members and 150 employees, including its Japanese managing director in the lurch.

I am the legal advisor and company secretary to the Malaysian Association of Golf & Recreational Club Owner Berhad since its inception. My affinity to the industry is understandable. Incidently, Suasa Kristal (M) Bhd, the operators of the Kristal Golf Resort is a longtime member of the Association. And to top it all, the Japanese managing director, Ishihara Shotaro, has been elected as the Chairman of the Association in the June AGM elections. I have known Ishihara Shotaro for many years. This friendle chap, who is more Malaysian than Japanese due to his long stay in the country, does not come across as someone who has a hand in the closing down. In fact it was reported that his services in the club was abruptly terminated as well.

This incident will leave a mark in the industry for many years to come. I just do not understand why businesses in Malaysia is still being run in such "outlawish" manner. The closing of a golf club is properly governed under tha law i.e. the Companies Act. I am familiar with the basic legal provisions. It is in fact a win-win provision governing both operators and members of a club. If an operator is no longer in a position to carry on operations of the club for some cogent reason or another, the law is not steadfast in insisting the ailing operator to carry on with the operations. But the operator is required to be responsible and come up with proposals to wind up the scheme in an amicable manner, with the protection and compensation to members being made a priority. All the operator need to do is to just follow the law.

What has happened now does not benefit both the members and the operator. In fact the directors and shareholders of Suasa Kristal (M) Bhd run the risk of greater liability under the Companies Act, bearing in mind the wide ranging inprisonment sections. There is also sizeable capital value in the assets, buildings and properties of the golf club. What would happen to all these assets now that everything has been "left behind"?

I believe that directors/shareholders of the operator have not been properly advised, hence the unilateral closure. Goes to show that education goes a long way, even in the corporate world. The same goes for our politicans running the country. I have since contacted the Vice-Chairman of the Association (bearing in mind the non-availability of the Chairman), and God-willing, the Association will extend its cooperation in any way possible to salvage this situation.

Wassalam