If it's one member, one vote and you're using Bivio
software, does it matter if a member invests more than the
monthly contribution each month? Ours is $30 per month.
Should we only let members invest in $30 units, or should we
let members invest any amount over $30?

Thanks

Renee

Renee...

Partners will come and go and as they do, the share of the ownership will
change. If you have five partners now and for the next year all
contributions are the same then at the end of the year, each partner will
have 20% equity. Assume one partner departs and then each of the four
remaining partners has 25% equity. If you then add a new partner, they will
have almost no equity and the original partners will each have almost 25%
equity. As partners decide to contribute more or less each month, the
percentages will change so it's a futile task to try to keep all partners
equal.

The real issue is whether a partner is willing to own a large equity holding
and share their voting power equally with partners who have less invested
than they. The issue is not one of restricting the dollar amount to any set
limit because that will not ultimately control the relative percentages of
ownership equity. The issue is one of deciding how ownership and voting
control should be related (if at all) within your partnership.

With your one person one vote method, I personally don't see any reason to
restrict your monthly contribution limits as long as the partner with the
equity is willing to transfer what was absolute control for diluted control
over of their equity.


John Munn
Cross Country Investment Club

----- Original Message -----
From: "Renee Smith" <jameyrenee@bivio.com>
To: <club_cafe@bivio.com>
Sent: Tuesday, November 06, 2001 10:02 PM
Subject: club_cafe: Question about monthly contribution units


> If it's one member, one vote and you're using Bivio
> software, does it matter if a member invests more than the
> monthly contribution each month? Ours is $30 per month.
> Should we only let members invest in $30 units, or should we
> let members invest any amount over $30?
>
> Thanks
>
> Renee
>