LIXILIXI
The Lending Industry XML Initiative

LIXI™ @ Work

How LIXI works - The constitution

LIXI is regulated at its core by the constitution which was designed by the founding members in a way that would keep LIXI independent of any commercial entity and true to its goals. In their wisdom, the foundation members realised that LIXI itself would change the industry and as such made allocations in the constitution to allow the elected Directors of the Board and the Full Members to change some aspects of the constitution. These changes can only be in-line with the original intentions and fully supported by the majority of members.

This is the first call to have two clauses amended. The first clause deals with the structure of membership and the second with the annual member fees.

When LIXI was conceived, the Associate Member category was created to give interested parties a glimpse of the then unknown LIXI before joining as full members. Associate Member benefits are that of an observer without any voting rights. Over the years LIXI has gained momentum and recognition, negating the need for sneak previews. The Board has weighted all of the issues around the Associate Member category and has concluded that existing Associate Members would be better served if we extend them the same courtesy of observation without an annual fee or time consuming registrations and a paper chase.

The formal proposal to the members for voting at the AGM will be the reduction of member categories to one, that of an Ordinary [Full] Member.

The second proposal centers on the annual fees for Full Members. LIXI has not changed the fees since inception but the cost of providing services has dramatically risen in the last five years. In addition, the complexity and quality of work provided by LIXI has also increased, making it harder to supply the same or increasing levels of service based on the current annual fees. The Board is therefore proposing that for 2006 the fees remain the same but from 2007 the fees be increased annually by an amount between 5% and 10%. The actual rate of increase will be presented each year to the members at the AGM together with all the reasons behind the requested increase.

I am sure all members will be behind these proposals as they are in the best interest of LIXI’s long term productive existence. A detailed explanation will be circulated prior to the AGM and we welcome any queries on the subject either in writing or over the phone.