Memorandum of Agreement between the British Chess Federation (BCF) and the Northern Counties Chess Union (NCCU) concerning the NCCU Membership Scheme (NMS)

Introduction
At the BCF Council held on 23rd April 2005 it was agreed that the Northern Counties Membership Scheme should be adopted. This memorandum is the basis on which NMS is to be operated. References to BCF shall be assumed to change to ECF as from 22nd October 2005.

Basis
1. Eligibility
All those players not already Direct Members of BCF who live in the NCCU region or play in a league within NCCU

2. Membership
2.1 Scheme dates
The initial period of NMS is from 1st June 2005 until 31st August 2006 and thereafter from 1st September each year, if the BCF Finance Council in each year so decides.

2.2 Membership Applicability date
A player joining NMS will become a Basic Direct Member of BCF. Benefits of NMS apply from the date at which payment is made to NCCU, but see section 10 below for the date at which membership of ECF commences.

2.3 Transfer of membership
Existing eligible BCF Direct Members may transfer free to NMS if their membership renewal date is on or after April 1st 2005, without paying any further subscription to NMS until 1st September 2005 . For those with current three year subscriptions these same conditions will apply in 2006 to 2008, provided NMS is still in existence.

3. Financial arrangements
3.1 Membership fee
The annual NMS individual membership fee is £10 for adults and £5 for juniors. It is intended that these fees remain static for three years subject to being changed only in exceptional circumstances.

3.2 Payment dates
It is recognised that BCF’s liability for VAT arises when annual membership fees are paid to NCCU. It is agreed that all NMS subscription monies less accrued interest received by NCCU under NMS shall be remitted to the BCF so as to be received by the following dates:

15th October 2005: 15th January 2006: 30th March 2006: 15th July 2006
and subsequently by the same dates each year whilst NMS is in existence.

Interest paid into the account shall be retained by NCCU in recognition of NCCU administration costs. NMS monies received by NCCU shall be placed in a bank account (NCCU NMS account) specifically opened for this purpose.

3.3 Auditing requirements
NCCU bank statements relating to the NCCU NMS account will be made available to the BCF auditor

4. Constitutional requirements
4.1 Financial Standing Instructions
At a meeting of BCF Council on 23rd April 2005 part 3.3 of the Financial Instructions was suspended to enable annual membership subscriptions for NMS to the be paid through an NCCU bank account.

4.2 Constitution
At a meeting of the BCF Council on 23rd April 2005 it was agreed that NMS shall over-ride those parts of the BCF Constitution that are relevant for a period of fifteen months from 1st June 2005 to 31st August 2006.

5. Benefits for NMS members
5.1 British Championship
Membership of NMS confers the right to enter the British Championships and other events requiring BCF membership. Members of NMS are also entitled to an International Rating where appropriate.

5.2 Game fee
Members of NMS are exempt from paying Game fee at Game fee registered events from the date at which they join NMS – but see 7 below for events held outside NCCU.
In participating events within the NCCU area Game fees will be payable to BCF for players who are neither members of NMS nor otherwise Direct Members of BCF in accordance with the Game Fee Rules.

5.3 Grade
Members of NMS will be eligible to receive a BCF grade under the rules of the BCF grading system.

5.4 ChessMoves
ChessMoves will be available to NMS members through the e-mail alert system as soon as possible after the date of joining NMS.

6. Administrative details
6.1 Membership numbers
BCF has allocated BCF membership numbers from 5000 to 6999 for this scheme. The BCF are currently reviewing the whole membership numbering scheme.

6.2 Information flow
The full names, addresses and BCF reference numbers of NMS members will be kept up to date, and will be supplied to the BCF at regular intervals, at least monthly, in the format required for it to be copied into the BCF database, together with the original completed and signed application forms for ECF Direct Membership. BCF will supply congress organisers in NCCU with lists of BCF members shortly before each congress is scheduled to take place. BCF will also supply NCCU with a full list of BCF members on a quarterly basis. BCF are currently reviewing the format in which member information is to be held.

7. Results for Grading
Results for grading will be accepted by BCF only from graders for member organisations.
Results will be submitted in the format required by the BCF grading system. For non-Game Fee events, NMS members will be identified.
Where an individual player plays both in an NCCU and a non-NCCU League he/she will be entitled to reclaim Game fee paid on the non-NCCU games – such claims being made only through the relevant NCCU county organisation. Claims can be considered only after that Game Fee has been received by BCF from the non-NCCU event.

In participating events within the NCCU area Game Fees will be payable to BCF for players who are neither members of the NMS nor otherwise Direct Members of the BCF in accordance with the Game Fee Rules.

8. Event membership fees and voting rights
The relationship between membership fees, minimum fees and multiple voting entitlements is written into the Articles of ECF and applies to all events, including NCCU events. A detailed explanation of the relationship is given and illustrated in the Appendix to this memorandum.

9. Review
An NCCU committee and the BCF Directors responsible for Finance and Grading will together review NMS at regular intervals. They will present a formal report to the April Finance Council Meeting. Should Council or the NCCU committee decide that NMS is unlikely to attract at least one thousand members in the initial period of its operation, then NMS will be modified in years two and three so that the revenue from the scheme would be at least equal to that which would have been obtained under the Game Fee scheme.

10. ECF
It is recognised that the Memorandum and Articles of Association, Bye Laws and the Regulations of the ECF must cover all ECF aspects of NMS and the provisions of the same prevail in the event of any conflict with the terms of this memorandum and its Appendix. In particular NMS members must formally become members of ECF by completing and signing the individual application for membership.
Such applications must be submitted to BCF on a regular basis, it being recognised that under the Companies Act NMS members cannot become members of ECF until their application for membership has been received and approved by the ECF Board, though benefits of ECF membership accrue to NMS members from the date shown in paragraph 2.2.

11. Interpretation
In accordance with Council Resolution 9.4 at the Finance Council meeting on 23rd April 2005, any questions relating to the interpretation of NMS, as far as it effects BCF, shall be referred for decision to the BCF Constitution Committee through its Chairman or from 22nd October 2005 to the ECF Governance Committee.

12. Termination
Either party may terminate this agreement only after 31st August in any year by giving to the other notice of not less than three months on or before 31st May in any year. In this event any outstanding transactions covered by the agreement shall be brought forward and completed during the notice period, while the NMS scheme remains in effect.

Authorised on behalf of the Northern Counties Chess Union

Signed W. O’Rourke Date 22nd. October 2005

Authorised on behalf of the British Chess Federation

Signed R. Heppinstall Date 22nd. October 2005

Appendix

Section A

Membership Fees and Voting Rights
As far as Membership Fee, Minimum Fee and Multiple Voting Entitlement are concerned, those written into the ECF Articles apply to all. There is no separate basis for NMS events.

Event Membership Fee
Actual residual Game Fee paid.

Minimum Membership Fee
Currently £50 (as fee for "Other Organisations"). This will not be applied if, at current Game Fee rates, the total results of the event are greater than or equal to 114 Standardplay equivalents or 228 Rapidplay equivalents.

If a small event generates less than the above threshold number of results, it could
choose:
(a) to pay a supplement to the residual Game Fee equivalent to the number of
Standardplay equivalent results by which it falls short of 114 @ the
Standardplay rate (currently 44p), or equivalent to the number of Rapidplay equivalent results by which it falls short of 228 @ the Rapidplay rate (currently 22p).
Or (b) pay the residual Game Fee and become a non-member organisation and assign to a member event the total number of Standardplay equivalent results generated.

Event Multiple Voting Entitlement

Based on the total number of results generated on the standard scale, in
Standardplay equivalent results of:

1-1000 results 1 vote, 1001 - 2000 results 2 votes, 2001 - 3000 results 3 votes etc..

Results translate into votes on the basis of Standardplay equivalents in accordance with the following formulae:

A single event can include two or more of the above categories. Results will be aggregated by applying to each category the appropriate fraction to convert all to Standardplay equivalents or, by appropriate arithmetic manipulation, to the equivalents of the results of the main category of the event.

Section B illustrates some of the straightforward possibilities, converting both results and the standard scale into those of the event concerned.

Section B

Voting Rights

If any event above has equal to or less than the number of results specified in the first column it has two choices: either (a) to pay a supplementary Game Fee, at the relevant rate, equal to the number of results plus one by which it falls short, in order to become a voting member or (b) to opt to become a non-member, in which case it must pay the residual Game Fee due and may then formally assign its results to any Representative Member (as for clubs above).
NB if any Game Fee calculation results in a fraction of a penny, then it is rounded up to the next higher whole penny. There will be only one rounding up in each whole calculation.