I think it's a non-issue today. Percentage caps were included in the long standing NAIC Sample Club Bylaws and have been perpetuated ever since. As long as your members have one vote per person, the percentage of ownership doesn't come into play. Why force a member to withhold dues or limit the amount they contribute? In all the club visits I've made over the years, and all the disputes I've mediated, I've never once heard of issues over someone owning too much of the club.

Even if a large percentage member leaves the club, it's all about the percent return, not how much money the club has in the coffers.

Lynn Ostrem

Crow River Investment Club