Disbanning

Lillian G. Caldwell on

If 5 out of 7 want to dis-ban, can we dis-ban?

Bob Mann on

You can, but if the remaining two want to keep the club running then you should allow them to rather than disbanding.

> On August 26, 2014 at 8:30 PM "Lillian G. Caldwell" <kittiecaldwell@gmail.com> wrote:
>
>
> If 5 out of 7 want to dis-ban, can we dis-ban?

Laurie Frederiksen on

What rules has your club set up in your partnership agreement or operating procedures for making decisions? You'll need to follow those rules to determine whether a decision is binding on all members if 5 out of 7 people agree to it.

Even if the decision is final for the current club, there is nothing wrong with the two people that want to continue participating in a club starting up a new one.

Or, as Bob pointed out, if 5 people want to leave the club, you don't necessarily have to vote to disband it entirely. If you have more than 1 person working together at a business, it is a partnership. You could certainly continue an investment group with only 2 people in it if it worked for those two people.

Laurie Frederiksen
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Kittie Caldwell on

Thank you so much for your replies on disbanding. I checked our agreement and it say decisions will be made by 2/3 vote. I now have 6 of 7 wanting to disband. I have been the treasurer for at least 6+ years and no one wants the job. I never could get anyone to shadow me and now I am moving to Georgia. The club was formed in 1995 and it has been a great club but the members are not that interested in continuing.

My next question is: Can some members take stock for payment and some take cash or do we have to do it all the same? One member is considering stock. Another member asked if her money could be sent to her 401? I told her to ask her accountant. Cash seems the easiest to me.

Thanks,

Kittie Caldwell

TWIG

On Wed, Aug 27, 2014 at 9:13 AM, Laurie Frederiksen <laurie@bivio.biz> wrote:

What rules has your club set up in your partnership agreement or operating procedures for making decisions? You'll need to follow those rules to determine whether a decision is binding on all members if 5 out of 7 people agree to it.

Even if the decision is final for the current club, there is nothing wrong with the two people that want to continue participating in a club starting up a new one.

Or, as Bob pointed out, if 5 people want to leave the club, you don't necessarily have to vote to disband it entirely. If you have more than 1 person working together at a business, it is a partnership. You could certainly continue an investment group with only 2 people in it if it worked for those two people.

Laurie Frederiksen
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www.bivio.com

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ira smilovitz on

Yes, some members can take stock and the others cash. The club will have to decide who gets what. There is no legal way you can transfer stock or cash to a member's 401 plan.

Ira Smilovitz

On Wed, Aug 27, 2014 at 5:25 PM, Kittie Caldwell <kittiecaldwell@gmail.com> wrote:

Thank you so much for your replies on disbanding. I checked our agreement and it say decisions will be made by 2/3 vote. I now have 6 of 7 wanting to disband. I have been the treasurer for at least 6+ years and no one wants the job. I never could get anyone to shadow me and now I am moving to Georgia. The club was formed in 1995 and it has been a great club but the members are not that interested in continuing.

My next question is: Can some members take stock for payment and some take cash or do we have to do it all the same? One member is considering stock. Another member asked if her money could be sent to her 401? I told her to ask her accountant. Cash seems the easiest to me.

Thanks,
Kittie Caldwell
TWIG

On Wed, Aug 27, 2014 at 9:13 AM, Laurie Frederiksen <laurie@bivio.biz> wrote:

What rules has your club set up in your partnership agreement or operating procedures for making decisions? You'll need to follow those rules to determine whether a decision is binding on all members if 5 out of 7 people agree to it.

Even if the decision is final for the current club, there is nothing wrong with the two people that want to continue participating in a club starting up a new one.

Or, as Bob pointed out, if 5 people want to leave the club, you don't necessarily have to vote to disband it entirely. If you have more than 1 person working together at a business, it is a partnership. You could certainly continue an investment group with only 2 people in it if it worked for those two people.

Laurie Frederiksen
Invest with your friends!
www.bivio.com

Become our Facebook friend! www.facebook.com/bivio
Follow us on twitter! www.twitter.com/bivio
Follow Us on Google+

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