FREQUENTLY ASKED QUESTIONS
Is the Club the same as Crystal Mountain, Inc.?
No, the Club is a separate not for profit entity. The Club is comprised of members who own membership units, just like many golf clubs. It does not have shareholders or stock certificates.
Since a Club member does not have a stock certificate, what evidences the number of Club membership units owned by a Club member?
The Club maintains a membership roster naming each member and the number of membership units owned by each member.
Is a Club member ever permitted to directly transfer to a third-party some or all of the member’s Club membership units?
Yes, Article II, Section 6 of the Club’s Bylaws permits a member to transfer his or her Club membership units (1) as a bona fide gift, without consideration, to a family member of the Club member; (2) on the death of the Club member to such member’s personal representative by operation of law, and from such personal representative to the person or persons entitled thereto under the deceased member’s Will or pursuant to applicable law; (3) to the member’s spouse pursuant to a marriage dissolution or legal separation proceeding; or (4) if the transferor member is a “grandfathered” entity pursuant to Article II, Section 2 of the Bylaws, other than a trust or estate, to such person or persons who have an ownership interest in such entity. “Family” is defined in Article II, Section 6 of the Bylaws to include “a spouse, descendant, uncle, aunt, nephew, or niece” of the member, whether legally adopted or natural born. Neither Board approval nor sponsorship by existing members is required for such transfers, but the transferee must sign the Club’s Application for Membership and pay a transfer fee, which is currently $10 per membership unit being transferred.
What if the membership unit transfer does not qualify under Article II, Section 6 of the Club’s Bylaws (i.e., "Family Transfer")?
Then the only permitted transfer of membership units is to the Club itself, as a redemption. This can be done as part of a sale to a third party (which historically has been for more than the redemption value) or as a straight redemption/transfer to the Club. So long as the Club has sufficient cash to do so, it will currently pay the resigning member, or the member reducing the number of his or her membership units, $662.00 per membership unit transferred to the Club, such payment to be made within 30 days of the effective time of the member’s surrender of his or her units by signing and submitting to the Club the appropriate resignation or partial redemption certificate. However, the resignation certificate forms and partial redemption certificate forms used by the Club permit the resigning or partially redeeming member to recommend re-issuance of the Club membership units being redeemed to a particular person through a sale process.
Is it possible to transfer the unit ownership to an LLC co-owned by myself and my siblings or family, or does it need to be owned by an individual person(s)?
The answer is no. See Article II on Page 2 of the ByLaws: “Only natural persons, trusts or estates may own membership units in the Club”. It goes on to state that other entities in place at the time the club was formed are grandfathered in.
What will it cost for new members to join the Club?
Unless the transferee of the membership units is a transferee qualifying pursuant to Article II, Section 6 of the Club’s Bylaws, the applicant will currently be charged $662.00 per membership unit being purchased, plus a $10.00 transfer fee per membership unit being purchased, for a total of $672.00 per membership unit being purchased. For transferees pursuant to Article II, Section 6 of the Club’s Bylaws, currently the only charge will be the $10.00 per unit transfer fee.
What is the current market price per unit?
While the Club does not set the market price, it does keep historical information on the per unit sale prices which is available to anyone who inquires. The Club does not get involved in price negotiations nor do we don’t keep a record of private arrangements between buyer and seller for any amounts over the $662.00 per unit plus $10.00 per unit transfer fee.
Is there a Club membership application form?
Yes. They can be obtained from:
Amy Leonard Heim
Club Administrator
Crystal Mountain Founders Club
Phone: (855) SKI-CMFC or (855) 754-2632
Email: crystalfounders@gmail.com
Does the Club maintain a waiting list for new member applicants?
Yes, but Article II, Section 9 of Club’s Bylaws provides that membership units shall be issued to applicants approved pursuant to the provisions of Article II, Section 8 of the Club’s Bylaws in the following order:
a) If a resigning member, or a member reducing the number of his membership units, recommends issuance to a particular person, to that recommended person;
b) In the order of placement on the Club’s Waiting List.
What new member approval procedures are required by the Club?
If the applicant is not currently a member of the Club, he or she must complete the Club’s Application for Membership form, sign it and be sponsored by two existing Club members who sign the application form and warrant that they believe the applicant is of good moral character. The Club’s Board may make such investigation as it deems appropriate and, upon completion of that investigation, must vote upon the application. Approval of the application requires the affirmative vote of four trustees. All information communicated to the Board or to any Club investigative committee with respect to applications for membership shall be confidential. As discussed above, neither Board approval nor sponsorship by existing members is required for transfers (generally gifts to family members) made pursuant to Article II, Section 6 of the Bylaws.