We have a member that resigned resulting in 15 remaining.
One of the 15 has not attended a meeting or contributed
financially for 4 months. At our meeting, we discussed
buying out the departing member by transferring her units
equally among the remaining members and then withdrawing the
member from bivio. We would not be able to make an
investment for 2 months, as this would be our time frame for
paying the departing member. This became an issue because
of the partner thas does not contribute. It makes sense
that we divide the units equally among 14 instead of 15
given the situation. Does this present and potential
problems?

Michelle Bourbeau writes:
> We have a member that resigned resulting in 15 remaining.
> One of the 15 has not attended a meeting or contributed
> financially for 4 months. At our meeting, we discussed
> buying out the departing member by transferring her units
> equally among the remaining members and then withdrawing the
> member from bivio. We would not be able to make an
> investment for 2 months, as this would be our time frame for
> paying the departing member. This became an issue because
> of the partner thas does not contribute. It makes sense
> that we divide the units equally among 14 instead of 15
> given the situation. Does this present and potential
> problems?

The buy out is actually two separate transactions: withdrawal and
payments. Remember, from an accounting point of view your club is
just like a mutual fund. On any given day people can invest more or
withdraw some. If a member contributes, they get units (or shares if
you like mutual fund terminology). If they withdraw money, they
redeem units of cash at market value.

To learn more, please visit:

http://www.bivio.com/trez_talk/mail-msg?t=14458100003

Cheers,
Rob