Commercial Law
ABDUL RASHID ABDUL MAJID v ISLAND GOLF PROPERTIES SDN BHD [1989] 3 MLJ 376
ISSUE In this case, the issues is whether the board was entitled to levy and collect fees known as development fees from members?
PRINCIPLES The defendants owned, managed and operate a social golf club. Membership of the club is of the following types which are honorary membership, ordinary membership, ordinary transferable membership, subscribing membership, institutional corporate membership, expatriate transferable membership, ordinary social membership, term membership and visiting membership. Under the Rule 3 of the club’s rules provided, inter alia, that the club was a proprietary club, of which the defendants were the proprietors with a board of directors responsible for the policies, management and operation of the club. Rule 5 of the rules provided, inter alia, that all members shall not, by reason of his membership, be under any financial liability except for payment of his annual subscription and any other sums due under or levied under the rules and by laws to the defendants. The plaintiff is an ordinary transferable membership. The plaintiff applied to become a member of the club by submitting the necessary application form and duly executed a declaration contained therein which states, inter alia, that he accepted and agreed that the board of the defendants had sole responsible for the policies, management and operation of the club with the power to increase entrance fees and subscription and to levy and additional charges to meet expenditure and it also has the sole right to amend, vary, add to or formulate such rules, terms and conditions of the club including the withdrawal or addition of benefits and privileges of members as if may in its absolute discretion deem necessary.
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The board sought to levy and collects the development fees pursuant to its power under the rules. Rule 33 of the club’s rules provided, inter alia, that the board shall be the sole
ISSUE In this case, the issues is whether the board was entitled to levy and collect fees known as development fees from members?
PRINCIPLES The defendants owned, managed and operate a social golf club. Membership of the club is of the following types which are honorary membership, ordinary membership, ordinary transferable membership, subscribing membership, institutional corporate membership, expatriate transferable membership, ordinary social membership, term membership and visiting membership. Under the Rule 3 of the club’s rules provided, inter alia, that the club was a proprietary club, of which the defendants were the proprietors with a board of directors responsible for the policies, management and operation of the club. Rule 5 of the rules provided, inter alia, that all members shall not, by reason of his membership, be under any financial liability except for payment of his annual subscription and any other sums due under or levied under the rules and by laws to the defendants. The plaintiff is an ordinary transferable membership. The plaintiff applied to become a member of the club by submitting the necessary application form and duly executed a declaration contained therein which states, inter alia, that he accepted and agreed that the board of the defendants had sole responsible for the policies, management and operation of the club with the power to increase entrance fees and subscription and to levy and additional charges to meet expenditure and it also has the sole right to amend, vary, add to or formulate such rules, terms and conditions of the club including the withdrawal or addition of benefits and privileges of members as if may in its absolute discretion deem necessary.
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The board sought to levy and collects the development fees pursuant to its power under the rules. Rule 33 of the club’s rules provided, inter alia, that the board shall be the sole