Over the past few days it seems that FPSL have been sending out further invoices for fees which they claim is for administering fractional companies for 2024. In these letters they have been worrying investors by suggesting that the Fractional Companies could be insolvent if these fees are not paid, and suggesting that this could place the investments of fractional owners at risk.
In response we have been deluged with questions. We have contacted representatives of the Board of Directors of the Limited by Guarantee Companies to clarify the position and they have provided the following answers to your questions. It has not been possible to answer them all individually and we have been asked to get this message out to as many Fractional Owners as possible:
FPSL are NOT providing admin services to any of the Llana and Dunas Companies in 2024. They were suspended from providing services by a sub-committee of the Board on the 19th January 2024.
The independent Director for the LBG Companies - the only Director not controlled by FPSL - has said that they will step in to administer any LBG Companies where this is required. They will not charge Members for this service. The independent Director already administers a number of companies in this way.
There are 9 Tortuga Companies and the independent director is administering these including administering payments and distributing statements, so FPSL are not currently providing any meaningful ongoing services.
The 'fractional fees' historically (for the period from 2019 to 2023) are being challenged in the High Court and so until this mattter is resolved, FPSL cannot claim these fees and cannot seek to make the LBG Companies insolvent. To say otherwise is a distortion of the facts. Fees prior to 2019 were paid by TRG already.
The independent Director has no involvement with the White Sands project so has requested that it is clear that they have no advice on White Sands property interests.
Copies of these new demand letters have been sent to the legal team seeking to stop these invoices going directly to Members and they will be utilising these as part of their evidence in the progressing legal action. These have been extremely useful in supporting the legal argument that ALL LBG Companies should benefit from the legal action, so while we recognise that they can be worrying for those receiving the letters, in the long term they have been helpful to the legal claims.
Please do not pay fees directly to anyone - including TRG, FPSL or FPS Corporate Services. TRG is not asking you for payment for BRM fees.
We recognise that this continues to be confusing and upsetting, for which we continue to apologise.
Those that have been receiving rental income - in some cases for over a year now - should not be tempted to send any of this money to FPSL directly at the current time.