Club portfolio date for paying withdrawing member?
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Club portfolio date for paying withdrawing member? Can anyone tell us at what date (e.g. month end following member's written request to withdraw?) a club should value its portfolio in order to pay out a withdrawing member? If there is more than one answer, what is the common/ best practice for clubs? Thanks! Gladys Henrikson This date should be defined in your partnership agreement. Sent from my iPhone > On Jun 12, 2018, at 8:40 PM, Gladys Henrikson via bivio.com <user*34256700001@bivio.com> wrote: > > Can anyone tell us at what date (e.g. month end following member's written request to withdraw?) a club should value its portfolio in order to pay out a withdrawing member? If there is more than one answer, what is the common/ best practice for clubs? Thanks! > Gladys Henrikson Gladys,
Per our partnership agreement, the withdrawing member must submit his/her
written withdrawal request to the secretary. If received between monthly meeting
dates, the request will be considered received on the date of the next monthly
meeting. The members portfolio value will be determined on the next
valuation date after that meeting. For our club, the valuation date is 7
days prior to our meeting date.
Hope this helps.
Dick Lewis
GMIC
Sent: Tuesday, June 12, 2018 9:40 PM
Subject: [club_cafe] Club portfolio date for paying withdrawing
member? Can
anyone tell us at what date (e.g. month end following member's written request
to withdraw?) a club should value its portfolio in order to pay out a
withdrawing member? If there is more than one answer, what is the common/ best
practice for clubs? Thanks! Gladys Henrikson There is only one correct answer - the date specified in your club's partnership agreement. Our agreement specifies the last day of the month in which the withdrawal request has been received in writing and presented at a club meeting. Regardless of what date your club chooses, the general practice is to build in a reasonable delay so that member's can't closely time their withdrawal to a sudden spike in valuation. Ira Smilovitz Can anyone tell us at what date (e.g. month end following member's written request to withdraw?) a club should value its portfolio in order to pay out a withdrawing member? If there is more than one answer, what is the common/ best practice for clubs? Thanks! Gladys, The partnership agreement says that the valuation is based on the next meeting date after the request for withdrawal is read. So if the resignation is read at tomorrow's meeting, the valuation date is set for next month's meeting date. The valuation date according to our operating procedures is the last business day of the month, June 29. So the value of Heidi's account on June 29 will determine her account value for withdrawal. That is the way I read it. Usually, at tomorrow's meeting, a committee is formed to recommend method of payment, cash or stock transfer, or a combination of both, and they will report their recommendation at the July meeting. The club can discuss, make changes and then vote on how to pay the withdrawal. Jo Can anyone tell us at what date (e.g. month end following member's written request to withdraw?) a club should value its portfolio in order to pay out a withdrawing member? If there is more than one answer, what is the common/ best practice for clubs? Thanks! This would be something I would think you would have spelled out in your Partnership Agreement. The Club I'm in specifies the valuation will be the last day of the month following the meeting where the member submits their withdraw notice. I don't know if that is common practice, but it has worked for us. Note: Our meetings are the third Friday of the month. If the notice is received later than that, the valuation will be as of the end of the following month. Hope this helps. > On June 12, 2018 at 6:40 PM "Gladys Henrikson via bivio.com" <user*34256700001@bivio.com> wrote: > > > Can anyone tell us at what date (e.g. month end following member's written request to withdraw?) a club should value its portfolio in order to pay out a withdrawing member? If there is more than one answer, what is the common/ best practice for clubs? Thanks! > Gladys Henrikson
On Tue, Jun 12, 2018 at 11:54 PM, BETH GRIMES via bivio.com <user*22991800001@bivio.com> wrote:
Thank you, Laurie, and all,
This presentation and your comments have been very helpful.
Gladys Henrikson
-----Original Message-----
From: Laurie Frederiksen <laurie@bivio.biz> To: The Club Cafe <club_cafe@bivio.com> Sent: Wed, Jun 13, 2018 10:05 am Subject: Re: [club_cafe] Club portfolio date for paying withdrawing member?
On Tue, Jun 12, 2018 at 11:54 PM, BETH GRIMES via bivio.com <user*22991800001@bivio.com> wrote:
Dear All: I have not had time to review all of this thread. FYI: Our 711 Club has met monthly since circa 1950 and has Articles of Agreement that spell out the answers to these and all other questions of note and that are signed by all members as new members come into the club. We typically have 20 to 25 members in the club. We do not charge a Fee for withdrawal. Simply stated if the withdrawal request comes at least ten days prior to the end of the month, the Club then meets on the second Saturday of the following month and decides what stocks to sell to obtain the necessary $$ and a check is mailed as soon as the sales clear. For a deceased member the same process works so long as the death occurs before the next Club meeting. Other methods could work and should be in your Club agreement and read and understood by all. Best Regards, Leo Cardillo Treasurer 711 Investment Club On Tue, Jun 12, 2018 at 10:30 PM, ira smilovitz via bivio.com <user*2883400001@bivio.com> wrote:
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