The Charleston Boat Corporation and Charleston Boat Club are two separate corporate entities that have a rich history here in Charleston, West Virginia, on the Kanawha River. These corporations date back to the 1930s. The Boat Corporation was formed to hold and own real estate; whereas, the Boat Club was formed to own and manage the boat docks utilized by Club Members. Recently, there has been a legal analysis concerning the wisdom and desirability of combining the two corporations. However, since the Charleston Boat Corporation is a for-profit corporation and Charleston Boat Club is a not-for-profit corporation, it was determined to be unwise to merge these two corporations.
The Charleston Boat Corporation is and has been owned by shareholders, with each share purchased for $100. A problem developed in that many shareholders were no longer accounted for as owners of shares have died over these many decades, and Certificates of Stock have been lost. Heirs of the original owners have been difficult to identify. This problem was addressed at a special meeting held by the shareholders of Charleston Boat Corporation on November 16, 2023.
At that meeting, it was determined that in order to be eligible to be an owner of a share of stock in the Charleston Boat Corporation, one must be a Member of the Charleston Boat Club. All other shares of stock will be redeemed by the Charleston Boat Corporation or money held in escrow ($100 per share) for those unaccounted shares of stock. Accordingly, one share of stock may be owned by a Member of the Charleston Boat Club. Old shares of stock held by Members will be exchanged for new stock certificates. A Charleston Boat Club Member may only own one share of stock. The cost is $100. The value of the stock will not vary, and no dividends will be paid. No shares of stock may be transferred, sold or given away.
That may beg the question of “Why should I purchase and own a share of stock in the Charleston Boat Corporation?”
Purchasing of stock is an opportunity. The Charleston Boat Corporation is not pushing or urging anyone to purchase a share of stock. In years past, shares of stock have not been available for purchase, and Members were disappointed not to be able to purchase and own shares of stock. A share of stock in the Charleston Boat Corporation entitles the shareholder to have a vote in the Charleston Boat Corporation, which owns the real estate of the Corporation. The real estate includes a building that generates substantial rent income for the Charleston Boat Corporation. Accumulated income received by the Charleston Boat Corporation has been loaned at low interest rates to the Charleston Boat Club. Hence, the advantage of owning a share of stock is that each shareholder will have a vote and a say in the operation of the Charleston Boat Corporation, which is closely tied to and is an integral part of the Charleston Boat Club. Annual meetings of the Charleston Boat Corporation will be held on the same day as that of the Charleston Boat Club, immediately before the Boat Club meeting.
When a shareholder dies or otherwise ceases to be a Member of the Charleston Boat Club, that share of stock must be redeemed by the Charleston Boat Corporation for $100. Only current Members of the Charleston Boat Club are eligible to own a share of stock. Purchasers of stock will receive an official Certificate of Stock of the Charleston Boat Corporation. This is not a money-making proposition for the Charleston Boat Corporation; however, the sale of stock will generate some money which may in turn be loaned to the Charleston Boat Club for its improvement projects and other financial needs. There is no deadline for purchasing shares of stock, and only one share may be owned by a Member of the Charleston Boat Club.
Anyone interested in purchasing a share of stock in the Charleston Boat Corporation should contact Riley Brothers, Treasurer for the Charleston Boat Corporation (rbrothers@charlestonmarine.com).
-R. Edison Hill, President, Charleston Boat Corporation, Inc.
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