Action between meetings
How do clubs handle a members request to buy or sell a stock
that they feel should be done before the next meeting.
that they feel should be done before the next meeting.
We do it by email and make the trade if the majority answers yes.
How do clubs handle a members request to buy or sell a stock
that they feel should be done before the next meeting.
If you think you might have to do this, you should have a documented procedure that is part of your Partnership Agreement or Bylaws. Any deviation from your adopted rules can lead to conflict and potential legal issues if a member feels injured by the action.
Ira Smilovitz
How do clubs handle a members request to buy or sell a stock
that they feel should be done before the next meeting.
Our Club does it by email. We have 9 partners and try to make sure everyone has read the email and we have a quorum before any purchases.
This process is not in our Partnership Agreement, We discussed and voted on the process during a regular meeting about a year ago and the discussion and vote is documented in our minutes for that meeting.
Is this sufficient, or is it recommended or required that the process be in the PA?
Thanks
Jeff
On Friday, February 18, 2022, 04:18:10 PM CST, ira smilovitz via bivio.com <user*2883400001@bivio.com> wrote:
If you think you might have to do this, you should have a documented procedure that is part of your Partnership Agreement or Bylaws. Any deviation from your adopted rules can lead to conflict and potential legal issues if a member feels injured by the action.
Ira Smilovitz
How do clubs handle a members request to buy or sell a stock
that they feel should be done before the next meeting.
Jeff,
I'm not a lawyer, so I can't provide legal advice. However, as a tax professional with decades of experience, I've seen too many instances where things have gone wrong and when the lawyers do get involved, they look for the paperwork. The fact that your club has discussed this and agreed to the procedure by a documented vote is good. it would seem to be a "belt and suspenders" move to amend the appropriate club governing document so there can be no future question that this was approved by the club.
Ira Smilovitz
Our Club does it by email. We have 9 partners and try to make sure everyone has read the email and we have a quorum before any purchases.This process is not in our Partnership Agreement, We discussed and voted on the process during a regular meeting about a year ago and the discussion and vote is documented in our minutes for that meeting.Is this sufficient, or is it recommended or required that the process be in the PA?ThanksJeffOn Friday, February 18, 2022, 04:18:10 PM CST, ira smilovitz via bivio.com <user*2883400001@bivio.com> wrote:If you think you might have to do this, you should have a documented procedure that is part of your Partnership Agreement or Bylaws. Any deviation from your adopted rules can lead to conflict and potential legal issues if a member feels injured by the action.Ira SmilovitzHow do clubs handle a members request to buy or sell a stock
that they feel should be done before the next meeting.
We have it written in our partnership agreement that between meetings, two officers can propose a sale or purchase and it must approved by email by a majority of the partners.
Peter Dunkelberger
Sumner stock Selectors Investment Club
Jeff,I'm not a lawyer, so I can't provide legal advice. However, as a tax professional with decades of experience, I've seen too many instances where things have gone wrong and when the lawyers do get involved, they look for the paperwork. The fact that your club has discussed this and agreed to the procedure by a documented vote is good. it would seem to be a "belt and suspenders" move to amend the appropriate club governing document so there can be no future question that this was approved by the club.Ira SmilovitzOur Club does it by email. We have 9 partners and try to make sure everyone has read the email and we have a quorum before any purchases.This process is not in our Partnership Agreement, We discussed and voted on the process during a regular meeting about a year ago and the discussion and vote is documented in our minutes for that meeting.Is this sufficient, or is it recommended or required that the process be in the PA?ThanksJeffOn Friday, February 18, 2022, 04:18:10 PM CST, ira smilovitz via bivio.com <user*2883400001@bivio.com> wrote:If you think you might have to do this, you should have a documented procedure that is part of your Partnership Agreement or Bylaws. Any deviation from your adopted rules can lead to conflict and potential legal issues if a member feels injured by the action.Ira SmilovitzHow do clubs handle a members request to buy or sell a stock
that they feel should be done before the next meeting.
Ira,
We will amend the PA to include non-regular meeting transactions by email and virtually.
The landscape has changed.
Thanks much
Jeff
On Friday, February 18, 2022, 06:53:54 PM CST, ira smilovitz via bivio.com <user*2883400001@bivio.com> wrote:
Jeff,
I'm not a lawyer, so I can't provide legal advice. However, as a tax professional with decades of experience, I've seen too many instances where things have gone wrong and when the lawyers do get involved, they look for the paperwork. The fact that your club has discussed this and agreed to the procedure by a documented vote is good. it would seem to be a "belt and suspenders" move to amend the appropriate club governing document so there can be no future question that this was approved by the club.
Ira Smilovitz
Our Club does it by email. We have 9 partners and try to make sure everyone has read the email and we have a quorum before any purchases.This process is not in our Partnership Agreement, We discussed and voted on the process during a regular meeting about a year ago and the discussion and vote is documented in our minutes for that meeting.Is this sufficient, or is it recommended or required that the process be in the PA?ThanksJeffOn Friday, February 18, 2022, 04:18:10 PM CST, ira smilovitz viabivio.com <user*2883400001@bivio.com> wrote:
If you think you might have to do this, you should have a documented procedure that is part of your Partnership Agreement or Bylaws. Any deviation from your adopted rules can lead to conflict and potential legal issues if a member feels injured by the action.Ira SmilovitzHow do clubs handle a members request to buy or sell a stock
that they feel should be done before the next meeting.
We have two clauses in our PA to help cover these situations. They did come in useful during the volatile days of the early pandemic:
- Special meetings may be called at any time by any officer of the club.
- A vote to buy or sell securities shall be taken at a regular meeting or at a special meeting duly convened.
Our PA does not limit us to in-person meetings - so we've used Zoom when in-person is not safe.
Real-life examples are members asking for a special meeting, quick coordination by the officers to set one up via zoom, all normal rules apply (send agenda - even if just one item, must have a quorum, minutes taken, etc).
We've also used creative buy/sell authorizations in regular meetings to pre-plan - i.e. sell X at $Y limit price, sell X if specific market conditions are met or buy X if it drops below $Y.
- Michael Boyd, Treasurer
Salt Pond Investment Club
From: club_cafe@bivio.com <club_cafe@bivio.com> On Behalf Of jeff clark via bivio.com
Sent: Friday, February 18, 2022 11:57 PM
To: club_cafe@bivio.com
Subject: Re: [club_cafe] Action between meetings
Ira,
We will amend the PA to include non-regular meeting transactions by email and virtually.
The landscape has changed.
Thanks much
Jeff
On Friday, February 18, 2022, 06:53:54 PM CST, ira smilovitz via bivio.com <user*2883400001@bivio.com> wrote:
Jeff,
I'm not a lawyer, so I can't provide legal advice. However, as a tax professional with decades of experience, I've seen too many instances where things have gone wrong and when the lawyers do get involved, they look for the paperwork. The fact that your club has discussed this and agreed to the procedure by a documented vote is good. it would seem to be a "belt and suspenders" move to amend the appropriate club governing document so there can be no future question that this was approved by the club.
Ira Smilovitz
On Fri, Feb 18, 2022 at 7:11 PM jeff clark via bivio.com <user*21133900001@bivio.com> wrote:
Our Club does it by email. We have 9 partners and try to make sure everyone has read the email and we have a quorum before any purchases.
This process is not in our Partnership Agreement, We discussed and voted on the process during a regular meeting about a year ago and the discussion and vote is documented in our minutes for that meeting.
Is this sufficient, or is it recommended or required that the process be in the PA?
Thanks
Jeff
On Friday, February 18, 2022, 04:18:10 PM CST, ira smilovitz via
bivio.com <user*2883400001@bivio.com> wrote:
If you think you might have to do this, you should have a documented procedure that is part of your Partnership Agreement or Bylaws. Any deviation from your adopted rules can lead to conflict and potential legal issues if a member feels injured by the action.
Ira Smilovitz
On Fri, Feb 18, 2022 at 4:47 PM Dianne Hirt via
bivio.com <user*24830400001@bivio.com> wrote:
How do clubs handle a members request to buy or sell a stock
that they feel should be done before the next meeting.
We set this up years ago to handle matters outside meetings and it's worked
rather well.
-----------
Matters may be brought before the Partnership outside of regular meeting in
electronic format. Such matters will be considered equally as if made during
a regular meeting, subject to the following:
- All Partners are expected to participate electronically using a forum
designated by the Partnership.
- Motions brought before the Partnership using electronic means others than
those designated by the Partnership shall be invalid.
- Proxy votes may not be used when conducting business electronically.
- Motions to conduct business electronically must be explicitly made.
Messages that contain motions should begin with the word “MOTION” as the
first word of the title.
- Motions are not valid until made, seconded, and restated by an officer of
the Partnership.
- Any electronic motion not decided expires at the start of the next regular
meeting.
------------
The biggest watchouts for this is someone using their own distribution list
instead of the Bivio club address. We had that happen a couple of time
early on. This not only ensures that you are contacting the entire club,
but you also get a record of all votes cast.
The other problem has been calling for a vote. In meetings this is not a
problem, but with e-mail once someone states a motion several of the members
will comment and vote immediately before we had discussion. Unless there is
a lot of discussion that could change an opinion, we usually count those as
valid votes.
Jimmy
James P. Dickerson
TLP Investment Club
-----Original Message-----
From: club_cafe@bivio.com <club_cafe@bivio.com> On Behalf Of Dianne Hirt via
bivio.com
Sent: Friday, February 18, 2022 4:48 PM
To: club_cafe@bivio.com
Subject: [club_cafe] Action between meetings
How do clubs handle a members request to buy or sell a stock that they feel
should be done before the next meeting.
rather well.
-----------
Matters may be brought before the Partnership outside of regular meeting in
electronic format. Such matters will be considered equally as if made during
a regular meeting, subject to the following:
- All Partners are expected to participate electronically using a forum
designated by the Partnership.
- Motions brought before the Partnership using electronic means others than
those designated by the Partnership shall be invalid.
- Proxy votes may not be used when conducting business electronically.
- Motions to conduct business electronically must be explicitly made.
Messages that contain motions should begin with the word “MOTION” as the
first word of the title.
- Motions are not valid until made, seconded, and restated by an officer of
the Partnership.
- Any electronic motion not decided expires at the start of the next regular
meeting.
------------
The biggest watchouts for this is someone using their own distribution list
instead of the Bivio club address. We had that happen a couple of time
early on. This not only ensures that you are contacting the entire club,
but you also get a record of all votes cast.
The other problem has been calling for a vote. In meetings this is not a
problem, but with e-mail once someone states a motion several of the members
will comment and vote immediately before we had discussion. Unless there is
a lot of discussion that could change an opinion, we usually count those as
valid votes.
Jimmy
James P. Dickerson
TLP Investment Club
-----Original Message-----
From: club_cafe@bivio.com <club_cafe@bivio.com> On Behalf Of Dianne Hirt via
bivio.com
Sent: Friday, February 18, 2022 4:48 PM
To: club_cafe@bivio.com
Subject: [club_cafe] Action between meetings
How do clubs handle a members request to buy or sell a stock that they feel
should be done before the next meeting.
Market Miners Investment Club added this clause to our bylaws:
-
In special circumstances, partners may call for a vote for a purchase or sale of assets to be taken via e-mail ballots. After a detailed proposal is sent to all members, there shall be a three day waiting period for rebuttal and discussion. Votes will be collected by the Senior Partner and the Treasurer. When they are in agreement that a majority of the full partnership has cast their ballots to authorize a specific action, the order for a purchase or sale will be placed with the broker and the partners will be notified of the actions taken.
Lee Weygandt,
MMIC Treasurer
On 2/18/2022 8:27 PM, Peter
Dunkelberger via bivio.com wrote:
We have it written in our partnership agreement that between meetings, two officers can propose a sale or purchase and it must approved by email by a majority of the partners.
Peter DunkelbergerSumner stock Selectors Investment Club
Jeff,
I'm not a lawyer, so I can't provide legal advice. However, as a tax professional with decades of experience, I've seen too many instances where things have gone wrong and when the lawyers do get involved, they look for the paperwork. The fact that your club has discussed this and agreed to the procedure by a documented vote is good. it would seem to be a "belt and suspenders" move to amend the appropriate club governing document so there can be no future question that this was approved by the club.
Ira Smilovitz
Our Club does it by email. We have 9 partners and try to make sure everyone has read the email and we have a quorum before any purchases.This process is not in our Partnership Agreement, We discussed and voted on the process during a regular meeting about a year ago and the discussion and vote is documented in our minutes for that meeting.Is this sufficient, or is it recommended or required that the process be in the PA?
Thanks
Jeff
On Friday, February 18, 2022, 04:18:10 PM CST, ira smilovitz via bivio.com <user*2883400001@bivio.com> wrote:
If you think you might have to do this, you should have a documented procedure that is part of your Partnership Agreement or Bylaws. Any deviation from your adopted rules can lead to conflict and potential legal issues if a member feels injured by the action.
Ira Smilovitz
How do clubs handle a members request to buy or sell a stock
that they feel should be done before the next meeting.