From: club_cafe@bivio.com <club_cafe@bivio.com> On Behalf Of Mark Eckman via bivio.com Sent: Friday, April 30, 2021 8:59 AM To: club_cafe@bivio.com Subject: Re: [club_cafe] Late payments
Why do you worry about when the club receives a payment? Back in the day when you had to compute the valuation by hand, a single date was fine, but with Bivio, you can process payments in seconds on the date received. Does that mean a $20 contribution from member "A" does not receive the same units as $20 from member "B"? Yes, but that is the nature of the market, prices change by the minute. Since the market does not wait, why should your club?
We use TDAmeritrade as the brokerage account. We do keep a separate bank account, but only as an easy means of collecting dues - funds get move pretty quickly to TDAmeritrade after we collect. The suspense account is only an accounting tool and we track that in Bivio.
From: club_cafe@bivio.com <club_cafe@bivio.com> On Behalf Of Peter Dunkelberger via bivio.com Sent: Friday, April 30, 2021 7:01 PM To: club_cafe@bivio.com Subject: Re: [club_cafe] Re: Late payments
Very interesting! Who is your broker? I gather that your bank account is separate from your brokerage account?
> If you are >90 days past due, your voting rights are suspended until you have paid in full. For voting purposes, the number of members for calculating a majority is reduced by 1.
> If you are >180 days past due, you may be expelled with a 2/3's vote. You may also be expelled by a 2/3's vote if you are deemed to be passive or non-participating as defined by the SEC. We have never had a vote to expel a member, although we have asked non-participating members to either more actively participate or resign from the club.
Our valuation date is the last day of the month, and allocations are made to all members on the 15th of the month. Members have a regular dues amount. They may pay multiple months in advance, but these are held in a suspense account and their regular amount is credited on the 15th.
We made a choice very early on to be very regimented in our approach and it has served us well for 25 years.
I was basically gathering info before our meeting tomorrow. I have been following up on late payments but I'm not going to do that any longer. It needs to be a club decision how to handle this and I'll present them with some possibilities.
I personally think that it's a messy way to do business - where members can pay whenever and whatever they want, but I'll be okay with any solution the groups comes up with except me chasing after late payments.