Finance Minister Paula Cox has refused a request by a group of dissident members of the Old Colony Club (OCC) who had asked her to appoint an inspector to investigate the controversial sale of the Club to the Argus Group of Companies.

In a letter addressed to the law firm Marshall Diel & Myers who are representing the dissident members, financial secretary Donald Scott explained why the Minister had declined the request.

He said: “ We have examined the documents carefully and concluded that there was no public interest concern that could cause the Minister to consider using the powers of the Act (Companies Act 1981) to launch an investigation into the internal affairs of a private members club.

Mr. Scott said the Companies Act has no jurisdiction over OCC, which is a private members club.

“Further, section 4 of the Act restricts the application of the Act to companies.

“While OCC is incorporated and therefore is a body corporate, it is not a company so far as we were able to determine on the basis of the information provided,” he added.

The dissident members told The Royal Gazette that they were disappointed with the Minister’s decision but were already considering future options, which would stop the sale of the club.

One of the objections could be to protest the sale on the grounds that it is contrary to the Club’ mandate.

A spokesperson said: “There is a reasonable good argument that the sale to Argus is contrary to the Club’s mandate as set out in its incorporating Act and Constitution. The sale converts the Club into a vehicle for making a profit, which runs contrary to its stated objectives of fellowship and recreation.

“Any one member or any member in the minority can write an objection to the Finance Minister asking her to intervene on these new grounds. If she rules in favour of the argument it would stop the sale of the club in its entirety.”

The dissident group is also considering asking the Supreme Court to issue an injunction to prevent the sale of the property to Argus.

“If we take this route we would have to demonstrate to the court that the OCC could realistically have been sold for more than the $10 million dollars Argus has agreed to pay for the club,” the spokesperson explained.

The OCC membership has agreed to sell the club to Argus, however the sale has been embroiled in controversy for several months with the dissident group alleging that the sale was riddled with procedural errors. There were also claims that many of the older and ‘more vulnerable’ members of the Club were given ‘false information’ when asked to sign their proxy votes and that pressure was applied for their signatures.

The OCC Management Committee has denied the allegation and said that proper procedures were followed when the club negotiated the sale of the club.

On November 30 the OCC membership voted unanimously to turn down a request by Argus who had asked to be given permission to excavate a section of the property on the southern boundary even though the sale of the Club had not been completed.