Significant loss of confidence

Disgruntled and anxious stakeholders (members, staff, well wishers)

Litigation inquiries and action in an increasing number of quarters

Mounting administrative expenses for the business.

Who are the most affected?

• Members
• Staff
• Partners (Aggregators who helped to build the business and who have “some responsibility” to indirect clients)
• Beneficiaries of sponsorships

Barriers Ahead

Ongoing court cases

Ongoing regulatory investigations and uncertainty of outcome…

Will of Banking institutions to stifle competition

Lack of support from customers

Continued heightened scrutiny from banks, regulatory authorities (local and international)

Lack of audit support

Threat of or lack of local banking services

Impaired fund balances and ability to meet liabilities

Political biases (existing and could get worse)

Litigation from customers and investors

Positives

Desire for higher rate of return and return to lifestyle supported by previous performance.

Proven track record of business owner

Some goodwill in diehard quarters

Conclusion

The negatives/barriers outweigh the positives. So there is overwhelming evidence to support winding down and closure.

Recommendations:

The appointment of a team of surrogates to act and speak for the business. Without full appreciation for legal issues, this team may need approval from lawyers and quite possibly the court.

The members will include a day-to-day manager, an accounting/audit liaison, HRD liaison, a Public Relations personnel, a secretary to support the entire group and two (2) operations personnel to carry out day-to-day admin/operational functions.

Operations

The main office and branches will remain closed and the appointed staff (surrogates) will operate through a virtual office. Communication will be strictly by email (tightly controlled and monitored). Of course, members will be allowed to email inquiries as they have a mind.

The only other communication will come from the Public Relations Personnel coordinated and directed by the day-to-day manager.

Communications to Members

Communication especially in the last year has been virtually non-existent. Extensive communication, addressing these and other matters is due right away and a commitment to communicate at least once weekly until closure.

Communication with Staff

An urgent staff meeting is required to address staff concerns. The meeting will address concerns about pay, on-going employment, etc. and will involve the consultation and services of an HRD liaison and any additional expert opinion if required.

The meeting will lay the groundwork and follow up to address each and every issue and a timetable will be set for action and follow up meetings.

Communication with Partners

Special and legal consideration is required for “Partners” to address the concerns of indirect customers/investors of/in the business.

In particular, Partners require definitive communication to communicate to customers/investors and reassurance in a legal context that there rights are being protected.

Audit

The details and progress of the ongoing audit should be managed by the accounting/audit liaison reporting to the day-to-day Manager. Further a biweekly report prepared in ‘layman’s” language should be made by the Public Relations Consultant. As soon as the situation as regards total liabilities and total cash is available, these will be communicated to members.

This will be followed by an offer to handle customer obligations and payout investor balances in proportion to available resources.

Communications to Beneficiaries

Beneficiaries will receive formal written communication of the club’s inability to carry on and honor its full obligations. This will be the responsibility of the Public Relations consultant and the day-to-day manager.

General Communication

It is imperative that aggressive arrangements be put in place to reassure members of a company structure that will remain in force in the event of, worse case scenario where the owner of the business is concerned.

This will include the availability of resources and formal and legally binding documentation to allow the surrogates to continue to act, adding additional signatures to brokerage and bank accounts, and making available resources to compensate the surrogate team.

Verification and Securing Physical/Electronic Assets

The surrogates will, right away, move to verify and secure the company’s office furniture, vehicles, computers, software and other intellectual material. Where possible, disposal will be arranged and electronic information secured in centralized storage to cut ongoing administration and maintenance and also, very importantly, prevent loss of valuable assets and information.

Managing the Company’s Obligations

The surrogate team will immediately verify and establish the company’s financial obligations, establish formal communication with third parties, and where possible, eliminate as soon as possible.

Where it is absolutely unavoidable, the surrogate will manage and service on an ongoing basis.

Verification of Financial Assets

Taking fully the legal implications into consideration, the surrogate team will seek to identify the company’s financial assets. They will have rights to, for example, ensure that fair rates of interest are being on investments and will have access to facilitate payouts in accordance with the provisions of the courts. In other words, they will be given full rights to carry out the company’s treasury function on a daily basis.

Trading Operations

Effective immediately, the business will have no access to commit the business’ funds for investment purposes or have access to direct use for the company’s funds without the approval of surrogate team members.

Accounts

The surrogate team will manage all banking relationships and will, as soon as operationally possible, close bank/investment accounts no longer needed

Personnel Requirements

Day-to-Day Manager

Banking/Financial/Brokerage/Investment Experience, no less than 10 years. Commodities/Stock Market Trading experience (especially back office) needed. Operated at Senior Levels and has supervisory and reporting experience.

Account/audit Personnel

Senior Accounting/audit experience no less than 10 years. Commodities/Stock Market Trading, especially back office experience required.

HRD Personnel

Senior HRD experience, not less than 7 years

Public Relations Consultant

At least 5 y ears experience with banking/financial background required

Operations Personnel (2)

At least 3 years experience, preferably in banking/investment.

Secretary

Executive level secretarial experience needed. AT least 5 years working experience.