South African Institute for Drug Free Sport Act, 1997
R 385
Report 71 Business Practices Committee6. The Committee's Code of Conduct for the Time-Sharing Industry |
Where a time sharing scheme is based on a club or a trust, and the rights of members are expressed in points, such schemes, in terms of the Committee's Consumer Code for the Time-Sharing Industry must furnish the Committee with a certificate from an auditor verifying the following.
| a) | The stock of time sharing held by the club/trust is sufficient to satisfy the number of points or rights held by club/trust members. The certificate must indicate the average points or similar identification system, required by such member to occupy peak, mid and low season weeks, the number of weeks held and the number of members which fall into these three categories, with due regard to the grading system used by the time sharing scheme. |
| b) | The levies due and payable by the club/trust have been paid. |
| c) | Systems employed by the club/trust are capable of performing, monitoring and executing the functions, control and provisions contained in the club/trust's scheme documentation. |
| d) | They shall furnish the auditor's certificate within six months of such time sharing being offered for alienation by the club/trust time sharing scheme, and shall thereafter be furnished at six monthly intervals. |
| e) | The alienation of time sharing in such a club/trust time sharing scheme shall provide prospective purchasers at each point of sale with a schedule reflecting the names of the resorts, and also the number of weeks in those resorts held by the club/trust time sharing scheme. Such schedule shall reflect a minimum number of resorts/weeks so hold. It shall not be a contravention if in fact the club/trust scheme held more than the stock of time sharing so described, at the time of sale. |
Maharaj did not comply with any of these provisions.
Maharaj indicated that he was aware of the shortcomings of his scheme, both in terms of structure and operation. He said that he would accept the merging of Leisure Club with an existing points pooling scheme which is also a member of TISA. Such a step would ensure the protection of the owners' timesharing interests.
