Our club has a total of 12 members. We just started our
investing this month. It is a club composed of co-workers.
Some other co-workers are interested in joining our club.
In the future we would like to open our membership to our
co-workers. I would like to know if there is any limit to
the number of members a stock club could have? If we add
new members is there anything we would have to change in our
partnership agreement? Thank you very much for your help in
this matter.
Tom Hickey

Tom --

The IRS doesn't place a limit on the number of investors in
an investment club, but for practical purposes you may not
want to go higher than 25 or 30 members.

It simply becomes difficult to let everyone feel like their
participating in the club when your membership gets very
large.

I would suggest that if you have a number of co-workers
interested in the club, that you simply create 2 or 3 clubs,
and you can always share research between clubs and even
have the same or similar investments.

As far as changing your parternship agreement or by-laws,
there should be a statement in your documents that outlines
the procedure for changing the by-laws or part. agreement.
That is most likely a very simple process based on how many
members need to support the change.

Chris
tedmetro@yahoo.com


Thomas L. Hickey wrote:
> Our club has a total of 12 members. We just started our
> investing this month. It is a club composed of co-workers.
> Some other co-workers are interested in joining our club.
> In the future we would like to open our membership to our
> co-workers. I would like to know if there is any limit to
> the number of members a stock club could have? If we add
> new members is there anything we would have to change in our
> partnership agreement? Thank you very much for your help in
> this matter.
> Tom Hickey