Hi,
We need your advice. We have 1 member wanting out of our club. Most of the club's stock has lost money. We pretty much keep even % among our members.
 
I had thought that we would run a member summary statement. Then pay the leaving member the amount that shows as her market value in the statement. Does this sound correct?
 
Thanks, Judy

Judy,

The procedure for handling a member withdrawal should be
spelled out in your club's partnership agreement. You must
follow that procedure.

As to what to give the departing member. If you have any
stocks that are worth more than your basis in them, it may
be advantageous to give the stock to the departing member.
If not, you may have to sell some of your losers to generate
cash.

There are a number of good articles on this subject in the
old "trez_talk" area here. One such article is

http://www.bivio.com/trez_talk/mail-msg?t=2984700003&s=1

There is no advantage to keeping everyone's share in the
club even, so don't worry about it.

Ira Smilovitz

Judy Huntting wrote:
> Hi,
> We need your advice. We have 1 member wanting out of our club. Most of the club's stock has lost money. We pretty much keep even % among our members.
>
> I had thought that we would run a member summary statement. Then pay the leaving member the amount that shows as her market value in the statement. Does this sound correct?
>
> Thanks, Judy

 Sounds like you're on the right track. Our bylaws have
 provisions for new members (less than two years) and
 founding meambers who want to leave the club. The member
 leaving would not beable to vote on what to sale. Personaly
 I would sale some losers.