The UpFront Club Transfer: A Cooperative Merger
by Alan Harrington, Maple Street Co-op Manager

Everything that you may or may not have heard about the UpFront Club and Maple Street Co-op can now be told and the facts put on the table (or, in this instance, in the newsletter!). In simple terms, all operations, finances and memberships of the UpFront Club are under the auspices of the Maple Street Co-operative Society Limited as of 1 December 2005.

To let members know more about this transfer and what it means, a bit of background information is called for. In late October 2005, acting on advice from its auditor as well as its advisory accountant, the Maleny Cooperative Club Limited (the UpFront Club) advised the Registrar of Co-operatives that it was probably technically insolvent.

Around that time, the UpFront Club's Board made representations to the Co-op's Board. Manager Alan Harrington then presented a detailed analysis and option paper to the Co-op's Board, which unanimously gave "in principle" approval for all managerial, financial (including all assets and liabilities) and membership functions of the Club to be transferred to Maple Street Co-operative. After all, the directors, like so many members, couldn't imagine life in Maleny without our much-loved cooperative Club.

The Maple Street Co-op's Board decided it has the financial and managerial expertise to ensure the long-term viability of the Club, both financially and socially. The Co-op's directors acknowledged that the Club provides an essential role in the social infrastructure of the Maleny community and that it's vitally important that this should continue. In addition, the Board considered it absolutely critical that the Club's 99-year lease continue to remain within the local co-operative movement.

The financial position of the UpFront Club was outlined to its members at a Special General Meeting (SGM) on Tuesday 25 October 2005. After listening to a variety of options (including the worst case scenario of the Club's closure), the 53 financial members at that meeting unanimously endorsed the recommendation of the Club's Board to transfer all aspects of the UpFront Club's operations to the Maple Street Co-operative.

The formal resolutions endorsing this transfer were put to the two co-ops' AGMs held on 23 and 26 November 2005 respectively. The transfer was overwhelmingly endorsed by the members of both cooperatives. Effective immediately, the directors of Maple Street Co-operative are now identical to those of the UpFront Club. This interim arrangement will continue until the "legals" are finalised, including the transfer of the liquor licence and the creation of one single membership between the two co-ops.

On the subject of membership, all current financial members of the UpFront Club will become members of Maple Street Co-op at no additional cost. In fact, from 1 July 2006, the annual subscription becomes a mere $11 per annum. The same discount (5% on any purchase) that Maple Street Co-op members enjoy will automatically apply at the Club once the legal requirements have been finalised.

The operational "transfer of engagement" is effective from 1 December 2005, and it means that the UpFront Club should now be seen as an arm or division of Maple Street Co-operative. Be assured that the operations of the Club will be conducted in accordance with cooperative principles and will be designed to meet the wishes and aspirations of all members.

As decided by the Co-op's Board, the manager of Maple Street Co-operative now becomes the overall manager responsible for the day-to-day operations of the Club as well as all matters financial. The managerial role is to be carried out in conjunction with the Club's existing co-managers – Kelly Robson and Bernie Gilmour – and all major decisions are to be made by consensus.

A detailed business plan has already been developed and will be implemented over the next few months. Every operation of the Club will be reviewed, and any changes that are deemed necessary will be introduced with as little disruption as possible. However, in early 2006 there will be some significant infrastructure changes – internal building alterations such as a new counter – that will mean the Club will have to be closed for a short period. There may also be a name change for the Club, and we'll welcome member input in due course.

It is important to understand that the directors of Maple Street Co-operative are committed to ensuring that the Club stays financially viable and that it meets the social needs of all of its membership for a long time to come. The Board respects that long-time members want to retain the Club's unique character – something that makes it different from other establishments in town – and will do its utmost to retain if not enhance it. It also acknowledges that some Co-op members may take some getting used to being part of one of the only cooperatives in the nation with its own licensed bar, and that some people are already members of both cooperatives. Again, the Board is resolved to finding a happy medium to meet all members' needs.

If you'd like more details or have any queries, please call in to Maple Street Co-op and talk to me.

[From "Maple Street Co-op News", December 2005/January 2006; published by The Maple Street Co-operative Society Ltd, 37 Maple Street, Maleny, Qld 4552, Australia, tel (07) 5494 2088, email maplest.co-op@serv.net.au, website http://www.maplestreetco-op.com.au]