I. PURPOSE
To serve as guidelines for Membership & Communications Department, other support groups, and interested bidders who wish to join the Auction Sale.
II. GENERAL PROCEDURE
1. The Membership and Auction Committee through the Membership Department will recommend to the Board of Directors the number of shares to be auctioned, minimum Bid Price, and Auction date.
2. The Membership and Auction Committee in coordination with Finance Department will schedule the date, time, and place of the Auction Sale.
3. Auction Sale Schedule will be held at least once every quarter of the year.
4. The Membership & Communications Office will send notice (to be signed by the Corporate Secretary) to the delinquent members approved for auction within ten (10) days from the order of the Board to auction the shares, to remind them of the Auction sale and to settle outstanding balances on or before the Auction date.
5. The Membership Department must publish the Auction notice in a local newspaper and other social media platforms and must post in the Club’s bulletin board for at least 20 days stating the date, time, and place of the Auction Sale, with invitation to submit sealed bids.
6. Interested bidders must visit the Membership and Communications Office to secure a Bid Form and copy of Rules & Regulations of the Auction Sale. (Annex A)
7. Bidders must fully accomplish the Bid Form and submit their sealed bids to the Membership & Communications Office together with the 10% of the minimum bid price in Cash or Manager’s Check.
8. On the day of the Auction Sale, the sealed bids are forwarded to the Membership & Auction Committee.
9. The Membership & Auction Committee will open the sealed bids at the auction to determine the highest bidder to whom share will be awarded.
III. RULES AND REGULATIONS
1. A Bidding Fee shall be collected from interested bidders upon securing a Bid Form. The said fee is inclusive of brunch and drinks on the day of the bidding. (refer to the Membership & Communications Office for the prevailing Bidding Fee)
2. The Current Minimum Bid Prices for the Regular and Corporate Proprietary Shares are available at the Membership & Communications Office. The prices are exclusive of fees that may be imposed by the Club such as transfer fee.
3. Sealed bids must be submitted to the Membership & Auction Committee on or before 9:00am of the Auction date, with the 10% of Minimum Bid price, as bid bond in cash or manager’s check payable to Valle Verde Country Club, Inc. The auction is open to the Public, Members, and current assignees in good standing, and their dependents.
4. Individuals and juridical persons can participate in the bid for Regular Proprietary Shares but only corporations can bid for Corporate Proprietary Shares. Only bidders who submit their bids at the cutoff time shall be eligible to bid on all shares available for auction.
5. In the event that a winning bidder decides to participate in the succeeding auctions, he will be required to post another bid bond of 10% of the minimum bid price, refer to item No. 2 of this Rules and Regulations.
6. The Membership & Auction Committee will call for refresh bidding before the next tranche of shares for auction is offered. It shall be a sealed bidding. The mechanics for refresh bidding (if there be any, as may be determined by the Membership and Auction Committee in consultation with Finance Committee) after the first round of opening of sealed bids shall be announced by the Membership and Auction Committee prior to the auction.
7. The bid bond shall be returned to the non-winning bidders within forty-eight (48) hours after the announcement of winner(s).
8. For the winning bidder, the balance from the bid must be paid in full within seventy-two (72) hours from auction date. Failure to pay the balance of the total bid within the prescribed period of time shall result in the cancellation of the winning bid and the forfeiture of the bid bond in favor of the Club without any further action.
If the winning bid is cancelled due to non-payment of the balance, the Club may exercise its right to acquire the share in the amount equivalent to the amount due to the Club (i.e., any unpaid membership dues and charges, and unpaid usages of Club facilities) from the auctioned membership certificate.
9. In case of some or all membership Certificates are not sold, the Club is entitled to bid for the unsold shares in the amount not more than the total outstanding balance as of the date of bidding.
IV. AUCTION PROPER
1. Registration at Auction Venue
Opens: Auction Time
9:00 AM
Closes: 15 minutes prior to opening of sealed envelopes
9:45 AM
a) Cut-off time for registered bidders is strictly at 9:45 AM.
b) Deadline for submission of sealed envelopes is at 9:45 AM with the 10% bid bond from the minimum bid price, in Cash or Manager’s Check.
c) VVCC staff will provide number cards to bidders corresponding with their envelope number.
2. Acceptance of Bids in Sealed Envelope
Starts: A week before Auction Date
Deadline: 15 minutes prior to opening of sealed envelopes
9:45 AM
a) VVCC staff numbers each sealed envelope upon receipt.
3. Opening of Envelopes
Starts: 10:00 AM
a) Determining the highest bidder:
• If there are two (2) highest bidders with exact amount, they will be requested to outbid each other through sealed bidding.
• Their bids must be with a Minimum increase of P10,000.
b) The losing bidder is not automatically given the 2nd share for auction.
4. Minimum Bid Price (Floor Price)
a) Minimum Bid Price or Floor Price is determined through the share’s Fair Market Value and duly approved by the Board of Directors.
b) The minimum Bid Price is inclusive of BIR taxes.
c) Winning bidder must pay the transfer fee of P25,000 for Regular Proprietary Share and P50,000 for Corporate Proprietary Share, which are not included in the Bid Price.
5. Invite to Refresh the Bids for each succeeding share to be Auctioned
Before the next share to be auctioned is offered:
a) Sealed Bidding
b) A winning bidder may still participate in the bidding of the succeeding shares to be auctioned for the day, subject to another bid bond equivalent to 10% of the minimum bid price, in Cash or Personal Check.
6. Awarding and Payment
a) Winning Bidders must pay the balance of their bid price within 72 hours from Auction Date in Cash or Check (Personal or Manager’s Check).
b) Notice of Award (NOA) shall be given at the auction with the announcement of all winning bidders.
c) Winning Bidders are not automatic members of the Club. They will go through the usual procedure in Membership Application.
d) Failure to pay the balance of total bid within the prescribed period of time shall result in the cancellation of the award and forfeiture of the bid bond in favor of the Club, without any further action.
e) For non-winning bidders, the 10% bid bond will be refunded/returned within forty-eight (48) hours after the result of Auction had been determined or on the same day for bidders who are physically present on Auction date.
f) Certificate of Sale is to be signed by the Membership and Auction Committee Chairman, the Club President and the winning bidder, and will be issued upon receipt of full payment and the required application documents. (Annex B)
APPROVED AND RATIFIED BY THE BOARD OF DIRECTORS
On November 20, 2021 during the Regular Board Meeting
