It isn't the expenses that are responsible for the different ownership amounts (at least not directly), but rather the value of one unit at the time each member made a contribution to the club. Members who contribute funds at a time when the unit value is low purchase more units than members who contribute funds at a time when the unit value is high. Ownership percentage is based on percentage of units owned, not percentage of capital contributed.

 

Ira Smilovitz

 

Our VP has contributed over $4 more than our Secretary.  However, our Secretary owns 19% of the partnership while the VP only owns 18.3%.

The VP contributed more during a period of high expenses (start up costs such as name registration, acctg. software subscription, public notices, etc.), while our Secretary contributed more dollars recently during a period of almost no expenses.

The VP owned a greater percentage early on, and hence was allocated a greater portion of dividends and expenses.  As it worked out, more of the VP's contributions had expenses associated with them relative to the Secretary's recent contributions.  Is this the likely reason for our Secretary owning a slightly greater percentage (more of his dollars available due to lack of expenses at time of contribution)?  If not, any input regarding the likely reason?

We have reviewed each transaction since inception.  All numbers appear accurate.

Thanks!

RJN