COMPLAINT......
COMPLAINT TO THE STATE OF HAWAII MARCH 2005
We are challenging the Sands
of Kahana Vacation Club annual election of Board of Directors and
proxy representation, held March 1, 2005 , for the following reasons:
1 There was
no validation of the votes that were collected from Consolidated
Resorts Management, LLC, (CRM) the Plan Manager of the
Sands of Kahana Resort.
A When the
inspectors of the election, Judy Morrissett and Linda
Sherger finished counting the votes that were turned
into the meeting, they were given a slip of paper with
the vote and proxy count that had been collected
by CRM . Mrs. Sherger asked Mr. Cober, CRM representative,
where the stamp of an independent auditor verifying these
votes was. She was told that she would just have to accept
those numbers. (Document
1)
2 People running
for the Board have never been allowed to solicit the
membership for votes or proxies.
A An owners group sent
a request (Document
2-3) to both Mr. Richard Rodriguez, President
of CRM , the Plan Manager, and Mr. Michael Kaplan, President
of CR and President of our Sands of Kahana Vacation Club
(SOKVC) Board of Directors, asking to solicit the membership
for votes and proxies through the Plan Manager's office
at our expense.(Document
2-3). Mr. Rodriguez wrote (Document
4) that we could do it through the newsletter. However,
the newsletter is never out at a certain time of the
quarter and it was certainly not available for this upcoming
election. Mr. Kaplan never replied to our letter.
B The official proxy/ballot
was mailed to the membership late January (Document
5). A letter from Michael Kaplan as
SOKVC board president was sent out 2-3 days later. (Document
6)
C Two weeks
after receiving the official proxy/ballot, members
started receiving proxies from Consolidated Resorts
that if the owners signed them, would negate all previous
proxies the owner had signed. Some people have reported
receiving up to 5 extra proxies from CR. (Documents
7, 8, 9)
3 There are
six units in the CRM inventory that were used in the
voting process but are not in Sands of Kahana Vacation
Club operation (available for timeshare owners).
A
We requested the #'s of the six units in question
from CRM but were not given that information (Document
10). (Document
10-a) is a map handed to timeshare owners
showing units in the club, they add up to 138. For
voting and accounting the Board is using the figure
144 for the number of units in the club.
B Our Declaration
of Covenants states the Developer can only use Vacation
Units for five years from the Starting Date which was
1994. (Document
11)
C Consolidated Resorts
is saying the project is sold out".
Summary:
We base
our complaint on:
A The inclusion of
questionable votes in this election
B Some candidates having
access to the membership list that was denied to other
candidates.
C Additional units
used in the voting process but not in the SOKVC operation.
We request :
A The election should
be declared invalid.
B A new election be
held with all candidates having equal communication with
the membership and that the membership be notified the
reason for this special election.
C The six additional
units should not be included in this vote.
D A third independent
party should be employed to conduct all further elections.
