The Manila Polo Club (MPC) is at the centre of a storm as a proposal to abolish club ties threatens to favour its most elite and pampered members.
A review of the 297 associate members – children of 147 parent stockholders – shows that they come from some of the country’s wealthiest business and political dynasties.
Among them are the descendants of an old, wealthy family of Spanish origin, a taipan, the owner of a large pawn shop, a prominent media dynasty, a retail magnate, a plantation owner from Mindanao, a renowned architect, the owner of a home appliance manufacturer, the operator of a shopping center and restaurant, and two influential politicians.
On average, each associate member is connected to two other members, with the highest number of connections being eight.
The majority of MPC’s 2,177 shareholders are outraged by the board’s proposal, led by former Government Service Insurance System president and GM Robert Vergara, to disassociate associate members from their common shares for a one-time fee of P2 million (instead of the original proposal of P2.5 million), a fee that is only a fraction of MPC’s current market price of P60 million per share.
Critics argue that decoupling could dilute share value and expose potential conflicts of interest, as some board members have associate members who could benefit. There is also confusion about the status of a board member, as associate members cannot vote or be elected to the board.
The Board recognizes that some owner members are upset that their children missed out on this offer and has stated that it will not offer additional associate memberships. Historically, these memberships were issued at token prices for a limited period of time decades ago and the current proposal continues this favoritism.
One Babbler noted that associate members could easily buy their own shares if they wished to keep their benefits, which currently end with the death of their parents or the sale of the shares. Given the significant benefit they already enjoy at a reduced price, the Babbler argues that no further favor is needed.
The MPC will consider the decoupling proposal and other pressing issues at its annual membership meeting on August 27. To respond to the growing backlash, the club has scheduled two town hall meetings for August 12 and 14.
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