Leda Yacht Share Owners’ Agreement
Dated 26/10/2020
Yacht Name Leda
Type Jeanneau Suncharm 39
SSR Number 84739
Home Mooring Poros/Galatas, Saronic Islands, Greece
Each of 4 shares owns one quarter of the capital of the yacht. Unless otherwise stated all costs and usage are shared equally.
Any costs and voting rights are in proportion to the share ownership (e.g. if one partner owns two ¼ shares, he will bear half the total costs and have half the total votes).
Syndicate coordination includes the following responsibilities:
Syndicate Manager
Syndicate Treasurer
Both to be agreed at the AGM; to be rotated annually unless otherwise agreed.
3. All Syndicate Members
· Agree with the other partners the general policy to be adopted for the coming season regarding the maintenance, repair, and renewal of equipment; the valuation for insurance purposes and to establish allocation of responsibilities and authority to incur expenditure.
· Make (after consultation with the other partners) arrangements for the purchase of capital equipment as may be decided by all partners.
· Insure the boat, her apparel and fittings with a recognised insurance company
· Employ any yard, sail-loft brokers or agents on their usual business terms to transact any necessary business in relation to the boat.
· Record ongoing spend
· Arrange true-up of expenditure mid-season if requested by any partner
· Arrange establishment of a maintenance fund if a large one-off expenditure is planned
· Collect accounts paid as evidence of payment to be presented at each AGM
· Report any issues to manager
· Report ongoing spend to treasurer
· Keep evidence of spend where possible for production at AGM
· Attend AGM in November
The boat shall not be used as collateral for any form of debt.
The Treasurer will record all costs incurred and coordinate any necessary true-ups of finances.
The Treasurer will invoke establishment of a maintenance fund if the Manager decides this is necessary to fund a large one-off cost.
Any costs larger than the ‘small renewals and replacements’ limit (see section 9) shall be subject to unanimous agreement before they are incurred.
Non payment of monies requested by the Treasurer for over 6 months shall allow the remaining partners to insist on the sale of the share, the proceeds from which shall first be used to pay arrears plus interest.
Total Time: Time is allocated to each partner in proportion of the partner's capital share in the boat in weeks and days as a proportion of the season from the 1st April to 30th October or, in the event of a shorter/longer season, the proportion of the actual time available.
Typically each partner will have an annual allocation of 6 weeks
Allocation of holiday dates which are agreeable to all partners will be made co-operatively if at all possible. In the event of no unanimous agreement being possible, the following method will be adopted:
Season is divided up into eight 3 week slots
Partners draw lots for 1st, 2nd, 3rd and 4th choice of a single 3 week slot
Partners then choose their 2nd slots in reverse order
Swapping and expansion into unused dates may then happen as may be agreed
Preferences for next season’s usage shall be notified to the manager 2 weeks prior to the AGM, a draft usage schedule can then be discussed at the AGM and changes made if necessary.
Normal week: This shall be deemed to start and end on Sunday
For the purposes of this clause “The owner” refers to the partner currently in the physical charge of the boat.
The owner will ensure at all times that whilst under his care the terms and conditions of the insurance cover are observed.
In the event of an accident caused by the owner or his appointed skipper the un-reclaimed loss (excess) shall be paid, by that owner. In the event of an accident caused by a third party the un-reclaimed loss (excess) shall be shared by the syndicate.
Racing shall not be allowed.
In order to observe the terms of the insurance cover and ensure the safety of the boat and her crew, the boat shall only be under the responsibility of a skipper who has adequate experience to be in charge of a boat of this type. Day skipper practical, and experience equivalent to 2 weeks bareboat charter as skipper in addition to ICC would be considered a bare minimum.
The boat shall not be loaned to, or skippered by, anyone who is not a share owner unless otherwise agreed as a Registered Skipper in advance with all owners and subject to the insurance cover conditions being met
The boat shall not be chartered.
A skipper under the age of 18 shall not be allowed.
Each partner is beneficial owner of the proportion of the capital value of the boat as stated above (section 2) plus any maintenance fund (less any outstanding commitments and payments) and is free to give, bequeath or sell this share. The new owner shall be subject to all the conditions of this agreement and become a registered skipper prior to any use commencing.
The remaining partners reserve the right to vet prospective incoming partners but may only refuse transfer on reasonable grounds.
The remaining partner(s) reserve the right to have first refusal on the purchase of the share for sale at a market value. If the partners are unable to agree a market value then the partner wishing to sell his share shall be deemed to have given the remaining partner(s) first refusal and shall be free to place the share on the open market.
A sale may not take place to a third party at a value less than that bid by one of the existing partners.
A sale may not take place which will result in the total number of the partners exceeding four of equal standing unless agreed by all the partners.
Routine : Each Partner shall be responsible for his share of the cost of necessary routine maintenance tasks as shall be required to keep the boat in the safe and readily usable condition during the sailing season.
Non routine maintenance and capital improvement: This will be undertaken when the safety of the boat is at risk, when an item of existing equipment requires renewal, when an item of new equipment is desired. Such expenditure is made on the unanimous vote (100%) of all the partners. If the treasurer determines it is necessary to fund a large one-off cost, a maintenance fund will be established by invoking a finances balancing, to include the anticipated cost of the large one-off item.
Small renewals and replacements of up to £250 per partner per season may be undertaken without prior discussion in order to be able to continue a cruise.
Any other costs incurred by a partner without prior agreement and not agreed as shared by a majority at the AGM shall be paid for by the partner.
The permanent home mooring location shall be on Poros/Galatas in the Saronic Gulf, Greece unless this agreement is changed by unanimous agreement.
Alternative temporary home moorings may be adopted on an annual basis in order to allow an extensive cruising ground. Such temporary home moorings shall be decided by discussion and agreement and on voting 3 votes in favour of a certain location shall carry the decision.
The permanent home location shall remain as in the previous year if there is no agreement to move.
The home location for each year must have adequate guardianage and maintenance provisions for the safety of the boat. It is the responsibility of the partners suggesting a location to furnish the other partners with the details of such arrangements together with associated estimated costs.
Two or more partners with consecutive holidays may arrange a remote change over from home location in order to allow such partners larger cruising ground within their time allocation
The boat must be returned to the home location at the end of such a cruise in readiness for the next partner who has not joined into the longer distance cruise.
If the boat is left unattended at a remote location between crew changes then the partner leaving the boat is responsible for ensuring that it is left in a safe condition under the care of a local professional. The costs associated with such an arrangement including for damage occurring when the boat is not occupied by any owner shall be borne by the two partners partaking of the cruise.
If the boat is not returned to the home location or other agreed location in readiness for the next partner, the partner failing to return the boat will be liable for the joining partner’s reasonable additional costs for up to 2 persons to join the boat.
The owner shall not take the boat before the start of the normal week booked for his use.
The owner shall leave the boat in a fully clean state refilled with fuel and water. Gas shall be replenished as soon as a cylinder is empty. Personal items of clothing/bedding shall not be stored on the boat. Perishable items shall not be kept on the boat unless for the use of all partners. Basic kitchen utensils/cutlery/crockery for 6 shall be replenished by the partners on an as needed basis, an end of season balancing shall take place.
On leaving, the boat must be fully vacated prior to the start of the next normal week start point and returned to its home mooring.
Failure potential or actual to return on time must be notified to the manager as early as possible in order to make arrangements with the next partner
In the event of a breakdown or failure of the yacht, the partner must make the yacht safe, notify the manager and assist as much as possible to arrange repairs to restore the boat to the normal conditions as quickly as possible.
In the case of any breakdown, any impacted partners will have no right to compensation nor additional usage time.
The boat will be covered by an appropriate breakdown insurance policy for the recognised cruising area.
This agreement cannot be changed without consultation of all shareholders and a unanimous vote (100%) will decide.