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  1. #11
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    Default Re: Syndicate Agreement Legal Question

    Here the two clauses following if that helps...

    6.3 If a dispute arises as to the price to be paid to the determining Party for his share then a valuation shall be obtained from a recognised Boat broker and in default of agreement then the entirety of the Boat shall be publicly advertised for sale with notice of time and place for sale being given to both Parties and she shall be sold. Each of the Parties on receiving his share of the purchase money shall execute the necessary Bill of Sale of his share in the Boat to the purchaser and deliver up possession of the Boat. The costs of such sale shall be paid by the Parties according to their respective shares.

    6.4 Where it is agreed to terminate this agreement and the Parties have mutually agreed to sell the Boat, it shall then be sold either by private treaty at such price as the Parties may agree or, in default of such agreement, by public auction subject to such conditions as are usual on the sale of such Boats. Each of the Parties shall be at liberty to bid for and purchase the Boat at any such public auction, or to purchase the Boat outright for the price advertised for sale by private treaty.


    Note that we're not in any dispute or anything like that!

  2. #12
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    Default Re: Syndicate Agreement Legal Question

    Quote Originally Posted by FARSCO View Post
    Surveyor is a good idea for an impartial valuation but a syndicate boat share isn’t worth value of boat divided by shares IMHO.

    To me it’s less as I wouldn’t like sharing my boat, having to use mechanic for everything incase i cock up, limited use etc...

    To someone else perhaps it’s more for the same reasons above plus divided running costs etc...

    That’s why unless someone buys the share.....it’s so hard to value it I reckon.
    It's actually quite often the other way around, i.e. the sum of the shares is greater than the value of the whole boat. Indeed, I know people who have bought a boat and have sold shares at such a value they recoup all their costs and still retain a share. But I appreciate that boat sharing isn't for everyone.

  3. #13
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    Default Re: Syndicate Agreement Legal Question

    Quote Originally Posted by BruceK View Post
    sorry if this is a bit of thread drift, but does a "short term" share (for instance a year or two lease at a time) exist as a sort of cost defray if a full time share doesn't come timeously. (obviously without owner rights etc) I query this as a sort of alternative to charter on a try before you buy type scenario for those looking to transfer to the Med. It's just an idle thought in so far as if I was contemplating a transfer to Med boating it would be a handy step in to make the choice when it's a family rather than personal decision and a boat in the Med makes boat sharing sense to me then. (Own boat locally but shared boat for holidays)
    Bruce, I have occasionally seen people selling a share of a season's use for a corresponding contribution of the running costs.

  4. #14
    Join Date
    Sep 2016
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    SoF
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    9,538

    Default Re: Syndicate Agreement Legal Question

    Quote Originally Posted by petem View Post
    Here the two clauses following if that helps...

    6.3 If a dispute arises as to the price to be paid to the determining Party for his share then a valuation shall be obtained from a recognised Boat broker and in default of agreement then the entirety of the Boat shall be publicly advertised for sale with notice of time and place for sale being given to both Parties and she shall be sold. Each of the Parties on receiving his share of the purchase money shall execute the necessary Bill of Sale of his share in the Boat to the purchaser and deliver up possession of the Boat. The costs of such sale shall be paid by the Parties according to their respective shares.

    6.4 Where it is agreed to terminate this agreement and the Parties have mutually agreed to sell the Boat, it shall then be sold either by private treaty at such price as the Parties may agree or, in default of such agreement, by public auction subject to such conditions as are usual on the sale of such Boats. Each of the Parties shall be at liberty to bid for and purchase the Boat at any such public auction, or to purchase the Boat outright for the price advertised for sale by private treaty.


    Note that we're not in any dispute or anything like that!
    It seems the agreement is written for the benefit of the individual shareholder and not for the benefit of the syndicate.
    The only person to do well will be the first person out
    Neither a Leaver or Remainer be

  5. #15
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    Default Re: Syndicate Agreement Legal Question

    Thanks all. Reading your comments in laymans language if one party wishes to sell his share then the other parties must agree to buy it or the selling and remaining parties look for a new buyer. If a new owner can't be found then the whole boat is then advertised for sale. That way, a partner isn't trapped into the syndicate.

    Does that sound correct?

  6. #16
    Join Date
    Sep 2011
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    2,232

    Default Re: Syndicate Agreement Legal Question

    Quote Originally Posted by petem View Post
    Thanks all. Reading your comments in laymans language if one party wishes to sell his share then the other parties must agree to buy it or the selling and remaining parties look for a new buyer. If a new owner can't be found then the whole boat is then advertised for sale. That way, a partner isn't trapped into the syndicate.

    Does that sound correct?
    Yup

  7. #17
    Join Date
    Sep 2005
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    Brighton/Antibes
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    8,634

    Default Re: Syndicate Agreement Legal Question

    BCU will give you a trade value for the boat (ie the value at which they would buy it in) which would be a reasonable valuation for the purposes of forced sale to the remaining partners.

  8. #18
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    May 2001
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    Default Re: Syndicate Agreement Legal Question

    Pete all 4 clauses are pretty much the worst contract drafting youíll ever see. They are incompetently drafted and RYA should be ashamed if thatís the model contract they suggest (is it?).

    The actual meaning is anyoneís guess. Such is the crumminess of the drafting. It says that at 6 months the agreement is terminated, in which case you would own a boat in shares but have no sharing agreement anymore because it terminated. Ffs! The writer has mixed up the concept of the boat share terminating (which the leaver wants) with the agreement terminating (which no one wants, until the boat is long gone).

    It looks like the writer was maybe trying to say that the remainers buy the leaverís share at 6 months, at fair price (!) but if they donít want to then the whole boat is sold without any specified time limit. But the words donít actually say that.

    I have by no means listed in this post all the defects in the clauses. Youíre going to have to agree something new between you. 6 months for the leaver to sell his share, followed by the whole boat being sold, feels sensible to me.

  9. #19
    Join Date
    Jan 2009
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    Stratford on Avon
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    11,180

    Default Re: Syndicate Agreement Legal Question

    Quote Originally Posted by petem View Post
    Thanks all. Reading your comments in laymans language if one party wishes to sell his share then the other parties must agree to buy it or the selling and remaining parties look for a new buyer. If a new owner can't be found then the whole boat is then advertised for sale. That way, a partner isn't trapped into the syndicate.

    Does that sound correct?
    I read it that the party wishing to leave the syndicate has 6 months to sell their share, and covers the cost of that sale. If the share not sold in 6 months, then the other 2 parties buy the share or if they don't want to do this, the boat is sold and the 3 parties share the sale proceeds.

  10. #20
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    Default Re: Syndicate Agreement Legal Question

    Quote Originally Posted by jfm View Post
    Pete all 4 clauses are pretty much the worst contract drafting you’ll ever see. They are incompetently drafted and RYA should be ashamed if that’s the model contract they suggest (is it?).

    The actual meaning is anyone’s guess. Such is the crumminess of the drafting. It says that at 6 months the agreement is terminated, in which case you would own a boat in shares but have no sharing agreement anymore because it terminated. Ffs! The writer has mixed up the concept of the boat share terminating (which the leaver wants) with the agreement terminating (which no one wants, until the boat is long gone).

    It looks like the writer was maybe trying to say that the remainers buy the leaver’s share at 6 months, at fair price (!) but if they don’t want to then the whole boat is sold without any specified time limit. But the words don’t actually say that.

    I have by no means listed in this post all the defects in the clauses. You’re going to have to agree something new between you. 6 months for the leaver to sell his share, followed by the whole boat being sold, feels sensible to me.
    Thanks. Jez has some alternative words that Ian Collett drafted so I'll have a look at them and see if they make any more sense. I agree that the intent is reasonable.

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