Today the Aurora Association of REALTORS® Board of Directors discussed additional terms and conditions that were recently added to the REcolorado-IRES merger and reached consensus that the REcolorado-IRES merger agreement, in its present form, is unacceptable.
“The Aurora Association of REALTORS remains supportive of a merger between REcolorado and IRES that will bring benefits for all shareholder associations and their members,” said Frank Thomas Aurora Association of REALTORS CEO. “If the conditions outlined by our board are unacceptable to any of the parties to this merger, then it is time to have further discussions about the value of the merger to the shareholders.”
The Aurora Association of REALTORS Board of Directors has a fiduciary responsibility to protect its most valuable asset, and agree an REcolorado-IRES merger agreement must ensure the following conditions:
- Aurora Association of REALTORS will continue to appoint members to a merged MLS board of directors, as appropriately allocated, based on our ownership share, and they will serve at the pleasure of the Aurora Association of REALTORS Board of Directors.
- Aurora Association of REALTORS will maintain the right to vote its shares of a merged MLS when and how the Aurora Association of REALTORS Board of Directors sees fit.
- Aurora Association of REALTORS will maintain the right to sell or transfer its shares in accordance with the current shareholder agreement in place, prior to any merger negotiations.
- The merged MLS will operate with one CEO who will be the sole staff person answering to the board of directors of the merged MLS.
- The board of directors of the merged MLS will make decisions with a simple majority requirement. No super majority will be required to decide any mission-critical issue, such as software vendor selection.
“This is a statement of our belief that REcolorado has been an incredibly well-run and profitable corporation for several years, and that our REALTOR members have benefited greatly from its growth, product development and customer service,” said Terry Gist, Aurora Association of REALTORS Chairman of the Board. “Aurora Association of REALTORS sees the enormous value of this merger to the association as the owner of the asset and to our REALTOR members. But it must be done in a way that benefits everyone.”
The Aurora Association of REALTORS recommends the REcolorado and IRES shareholders and leadership continue to work with a facilitator or explore other negotiation processes, if necessary, to refine the Plan of Merger so it not only benefits all brokers and appraisers, but also shareholders.
Notice has been provided to REcolorado and the group of eight shareholder representatives who have been heavily involved in REcolorado-IRES merger negotiations.