Abta reinstated Baldwins Travel as a member on Thursday pending an appeal against its expulsion which Travel Weekly understands will challenge the grounds on which the Kent-based agency group’s membership was terminated.
Travel association Abta confirmed its Members’ Committee had terminated Baldwins’ membership “with immediate effect after it failed to provide the financial information required” on Monday.
At the time, Travel Weekly understood there would be no grounds for an appeal as Baldwins had already appealed once, last autumn, against a Members’ Committee decision to terminate its membership.
That decision had been rescinded in light of undertakings made by Baldwins’ representatives to the Abta Appeal Board.
Two directors of Baldwins, finance director Christopher Hatfield and chief commercial officer Dan Shaw, subsequently resigned – leaving Nick Marks, whose family owned Baldwins Travel until its acquisition by Inc & Co Group in 2021, as the sole director.
However, on Thursday Abta confirmed it had granted Baldwins’ request for an appeal, noting in a statement: “Baldwins’ termination of membership is suspended from 20 February and they remain a member pending the outcome of the appeal.”
Abta also confirmed that, as long as Baldwins remains a member, “Abta’s financial protection will apply to bookings”.
Baldwins greeted this as a “positive development [which] ensures Baldwins Travel can continue offering clients a full range of services with the confidence of Abta protection”, suggesting “the reinstatement of its Abta licences” came “following a successful appeal process on Monday, 17th February”.
Abta’s decision to terminate Baldwins’ membership followed the Members’ Committee ruling last year and what Abta believes was a failure to comply with undertakings made to the Appeal Board to provide certain financial information.
The decision would have been taken in line with article 10 (7) of Abta’s articles of association which states a member “shall provide such further information, documents, or reports as Abta may require within such period as Abta may specify.
“Every Member, or his or her reporting accountant, shall be required to provide Abta with such further information as may be deemed necessary by the board of directors with regard to his or her financial position . . . in such form and within such time limit as prescribed.”
Should the member fail to provide such information “the board shall decide whether or not the membership . . . shall be terminated.”
Article 12 of Abta’s articles of association makes clear “there shall be no right of appeal against termination of membership resulting from a failure to comply” with requirements under article 10.
However, article 12, which lists the grounds on which the Abta board may “summarily terminate the membership of a member”, allows a right of appeal for a member “aggrieved by the termination or suspension of membership” on grounds other than those in article 10.
It includes a clause noting the board may require “undertakings” from a member and, in the event of a breach of such undertakings, “membership of Abta shall terminate” if established “at any subsequent hearing convened on notice to the member”.
So, a termination of membership for failing to comply with undertakings given to an Abta Appeal Board could be subject to appeal under article 12.
Abta’s statement confirming termination of Baldwin’s membership on the grounds that it “failed to provide financial information required” suggests the decision was made under article 10, with no right of appeal
But Baldwins’ representatives appear likely to contend any decision should have been made under article 12, requiring a hearing and allowing an appeal.
This will be adjudicated by an Appeal Board constituted especially for the purpose, likely to be held next month.
The Appeal Board must include a solicitor or barrister “of not less than 10 years’ standing”, a person with “no financial interest in, or business connection with, the travel industry”, and an Abta member “unconnected with the case under appeal”, although others can be co-opted on to the board.
A member has 14 days from receiving notice of termination of membership to appeal and to set out in full the grounds for appeal. Abta must then give at least 14 days’ notice of the date and time of the appeal hearing.