Kitchen Creek to decide corporate structure

On Oct. 3, at the clubhouse of the Kitchen Creek Golf Course, a meeting will be held to decide on the future corporate structure of these entities.
The meeting is open to all shareholders of these entities and the present Kitchen Creek Golf Course board of directors.
Shareholders do not need to be current members of the golf course.
The directors of the Rainy Lake Golf and Country Club Ltd., which owns and operates the Kitchen Creek Golf Club, have passed a resolution authorizing the incorporation of a new non-share corporation and authorizing the transfer of the assets and liabilities of the company to this new corporation.
This effectively will eliminate the shares which were issued over the years for various purposes—an action that requires approval by the present shareholders.
The board realizes not all of its shareholders may be aware of the reasoning behind this proposal, which has been discussed at previous shareholder meetings, and so it has authorized this news release to attempt to answer some common questions.
•Why are they doing this?
The purpose of this action is to allow the corporation to apply for grant funding for necessary capital projects and course improvements.
Previous applications were declined because the corporation still had shares in existence.
Much, if not all, of the public funding which the club needs to attempt to sustain and improve itself is not available for corporations with shareholders.
•How will this be done?
A special shareholders’ meeting has been called for Sunday, Oct. 3 at 2 p.m. at the Kitchen Creek Golf Course. The board’s resolution will be presented, discussed, and voted on at that time.
•What if a shareholder cannot attend this meeting?
A form of proxy is being provided with the meeting notice that can be signed and returned to the club prior to the meeting.
•What will happen to the old shares?
The old shares no longer would have any value as the Rainy Lake Golf and Country Club, Ltd. would have no assets. The physical share document may remain with its owner.
•What happens to the shares of dissenting shareholders?
Shareholders who disagree with this procedure and comply with the provisions of s.185 of The Business Corporations Act (Ontario) are entitled to be paid the fair value of their shares by the corporation, as determined by the corporation.
•Can the corporation afford to buy back all or a majority of its shares?
No. The club has limited financial resources and a significant debt load. the whole purpose behind this action is to open up new funding sources to the club.
•How rapidly can this be accomplished?
This process can be completed before the opening of the golf course next spring.