Fines paid by clubs
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Thanks Bob. We are very similar, no fines, and we have an option to remove a member if they are deemed passive/non-participating. We've never expelled a member, but I have had talks with a couple of members asking them to either become more active, or make room for someone else to join the club - but that was over 15 years ago. From: club_cafe@bivio.com <club_cafe@bivio.com> On Behalf Of Robert Shaw via bivio.com Our club acknowledges people have other lives and we do not use fines. We allow up to 5 absences; after that the president is directed by our PA to discuss the intentions of the absent member. A report will be given to the membership and a vote will be taken. If this determination is that the member does intend to be an active member they will likely be retained as a member. If not they will be voted out of the club. One point here from the SEC: "Generally, a membership interest is an investment contract if members invest and expect to make a profit from the efforts of others. If every member in an investment club actively helps decide what investments to make, the membership interests in the club would probably not be considered securities. If the club has even one passive member, it may be issuing securities." "An investment club must register with the SEC as an investment company under the 1940 Act if:
Having passive members has the potential to cause you problems. Bob
Our club has been in existence for 22 years, We have always had two types of fines. One is a late fee for paying payments late. The other is for leaving the club prior to 5 years. They are entered into bivio as a fee. No units are purchased, but it does increase the partners basis in the club. We never vote anyone out of the club for not providing reports or non-attendance to meetings. We do have an automatic withdrawal of any members that go beyond 60 days in arrears of payments. They are also charged a 50% penalty of their capital account for an automatic withdrawal. We have only had this happen a few times. They were informed it would be better to just withdraw rather than default into an automatic withdrawal. So the partner is fully aware of the consequences. Debi -----Original Message----- From: club_cafe@bivio.com <club_cafe@bivio.com> On Behalf Of Colleen Goings via bivio.com Sent: Wednesday, February 16, 2022 7:20 AM To: club_cafe@bivio.com Subject: [club_cafe] Fines paid by clubs I would like to know if other clubs are still collecting fines for not attending meetings, or for not having your report on your stocks for the day. If you do have fines, how does your club treasurer deal with them? I have been investing them with the person that paid them, because there are no classifications for fees. Just wondering how other clubs deal with this. Colleen Goings Wow, Debi. 50% fee is harsh. I bet that some of your members are hoping for those 60 non payments since they can benefit greatly by it. John Our club has been in existence for 22 years, We have always had two types of fines. One is a late fee for paying payments late. The other is for leaving the club prior to 5 years. They are entered into bivio as a fee. No units are purchased, but it does increase the partners basis in the club. We never vote anyone out of the club for not providing reports or non-attendance to meetings. We do have an automatic withdrawal of any members that go beyond 60 days in arrears of payments. They are also charged a 50% penalty of their capital account for an automatic withdrawal. We have only had this happen a few times. They were informed it would be better to just withdraw rather than default into an automatic withdrawal. So the partner is fully aware of the consequences. John No one hopes for it. Lol Trust me, these people have been notified over and over again as the time approaches the 60 day deadline. As with most clubs we are looking for people that want to be in the club actively for the long term. We have the automatic withdrawal for those that at 60 days delinquent and we have a sliding scale penalty for those that leave the club prior to 5 years. If they leave the first year it's a 50% penalty. The penalty drops 10% for each year until they reach 5 years. It has worked for us and no one complains about it. Debi. From: club_cafe@bivio.com <club_cafe@bivio.com> On Behalf Of
John Rice via bivio.com Wow, Debi. 50% fee is harsh. I bet that some of your members are hoping for those 60 non payments since they can benefit greatly by it. John On Fri, Feb 18, 2022, 12:17 PM DEBI THORNE via bivio.com <user*10134500001@bivio.com> wrote:
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