Question: Member Percentage Limit

Linda on

There are many solutions to your problem. It is not good to have one member with such a large percentage. That person could take a partial withdrawal, stop making contributions, others could be allowed larger contributions or a lump sum catch-up contribution.

Linda

Sent via the Samsung GALAXY S(R)4, an AT&T 4G LTE smartphone

-------- Original message --------
From: fipsrus@att.net
Date: 05/29/2016 9:30 AM (GMT-05:00)
To: club_cafe@bivio.com
Subject: Re: [club_cafe] Re: Question: Member Percentage Limit

Connie - That might be a question for Bivio! Ray

On Saturday, May 28, 2016 7:23 PM, Connie Humble <chumble@sdplains.com> wrote:

But tale a look at the flip side--I am a charter member--the only one left--and what am I supposed to do? I have made the same contributions as have the rest but I have 16 years of contributions with the next closest with 7. I realize that I have a large majority--but how were we to prevent it?

From: club_cafe@bivio.com [mailto:club_cafe@bivio.com] On Behalf Of Dick Lewis
Sent: Saturday, May 28, 2016 12:45 PM
To: club_cafe@bivio.com
Subject: Re: [club_cafe] Re: Question: Member Percentage Limit

Thank you both for your input. What you say makes sense. Now I understand the reason for this limitation.

Dick

From: fipsrus@att.net

Sent: Saturday, May 28, 2016 2:25 PM

To: club_cafe@bivio.com

Subject: Re: [club_cafe] Re: Question: Member Percentage Limit

Irena - I agree. Ray

On Saturday, May 28, 2016 1:22 PM, Irina Clements <irina39@verizon.net> wrote:

A large point is the impact to the portfolio if the person departs. We just had a person leave with 14%. Causes disruption. Is also a significant opportunity to winnow losers from the portfolio. To me its a similar issue whether stock percentage of the portfolio, or individual percentage, risk and disruption.

Be Well. Irina Sent from my iPad

> On May 28, 2016, at 2:06 PM, Dick Lewis <rlewis21@nc.rr.com> wrote:
>
> We're in the process of reviewing our Partnership Agreement
> and are questioning the reason for limiting a partner to 20%
> or 25% ownership. If our agreement states that each member
> gets 1 vote on issues the club is considering, regardless of
> their ownership percentage, what difference does it make if
> a member has a greater percentage ownership. We're
> considering removing that requirement but thought we'd
> question the reason for this limitation before we amend our
> Partnership Agreement. What point are we missing?

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