This paper argues what are the main issues of infringed golf membership right in the bankruptcy process of membership golf courses and how to solve it. In addition to the legislative imperfection of the 「INSTALLATION AND UTILIZATION OF SPORTS FACILITIES ACT」, undermining of the rights of golf members in the corporate rehabilitation procedures became more serious since the enforcement of the ‘Debtor in Possession(DIP) in 2006.
This study analyzed 32 cases of golf clubs that were newly opened after 2000 and applied for rehabilitation procedures. As the way to survive, most of the golf courses faced with the bankruptcy chose the corporate rehabilitation procedures which are controlled by the court. DIP is widely used by the court, but many cases doubt it undermines the golf membership rights.
This study suggests three ways overcome these concerns. First, in order to mitigate the risk of bankruptcy, we propose transparency enhancement of management, reinforcement of enrollment management, and regulation of the total amount of issuing membership. Second, it suggests strengthening the effectiveness of business succession of membership golf courses, the establishing a rehabilitation plan through membership consultation, supplementing DIP, such as the appointment of an external professional manager or co-custodian. Third, in the process of rehabilitation, it is a way to finance of membership golf courses using ‘Priority Claims’ approved by the court.