Reports have surfaced from within the Diamondhead Country Club that at least one member of the board of directors has demanded liquor and food as a form of compensation for his service to the nonprofit corporation. The same board member has ordered special food service, one of which may have been over $10,000, for member golfers at no charge and at the expense of all property owners.
The Diamondhead Country Club and Property Owners Association is a Mississippi non-profit corporation that charges all property owners one standard monthly rate. Failure to pay the mandatory dues will result in legal action and subsequently a lien being placed on the property owners’ property. The dues heavily subsidize golf and country club operations. The country club has been swimming in red ink for years.
There are no provisions to pay directors for service on the Diamondhead Country Club and Property Owners Association board of directors in the Mississippi nonprofit’s bylaws although section 5.10 allows for “reasonable expenses” that must be itemized and submitted to the board for approval. See 2015 revision of the bylaws
Wildly fluctuating and exorbitant costs of food and alcohol led to a call for a forensic audit from the DHCC&POA’s treasurer, Mike Schaefer. Four board members prevented the audit and subsequently Schaefer filed a motion for a declaratory judgement that would clarify if he had the right to take such action. All four local Chancery Court judges have recused themselves from the case and it is now up to the Mississippi Supreme Court to appoint a special Chancellor to hear the case.