Please share with me your experience with inactive members.
We formed our club in 1999 . We have a couple founding
members who have come to the conclusion that the work is
just to much for them. They are two wonderful ladies both in
ther seventies. They would like to stay in the club as
inacctive members and contribute every month as usual. We
did not cover this in our PA. Has anyone dealt with this
kind of request ?

Ronald, have not had quite the same expreience, however,
have had many request from folks who want to become members
of the club (writing a check) but not be active
participants. Our goal is to learn and grown. We have said
no to them as becoming a members. In your case you have
members who, it sounds like have contributed in the past,
but now it is a bit overwheleming for them. Could they
perhaps contributue on a verbal basis. There is much wisdom
in the mature age members. They can also be a resource on
what that age group is thinking about finances, products
they use, and areas that may not be addressed by younger
members. Maybe they could be paried with younger members to
work as a small team, helping with writing and computer
research.

Renee

RONALD N. HOSKIN wrote:
> Please share with me your experience with inactive members.
> We formed our club in 1999 . We have a couple founding
> members who have come to the conclusion that the work is
> just to much for them. They are two wonderful ladies both in
> ther seventies. They would like to stay in the club as
> inacctive members and contribute every month as usual. We
> did not cover this in our PA. Has anyone dealt with this
> kind of request ?

Ronald, Our club has 15 members currently and several are
what you would consider inactive also. However, we do not
classify them as such as they continue to pay monthly dues.
We consider that they have a different level of
participation. Our opinion is that they desire to abrogate
the day-to-day transactional business of the club to other
members. The other members are satisfied with being able to
use their money to increase the size of the club's portfolio
and allow them to participate in the profits (or losses)
equitably. They are contacted verbally on a periodic basis
to ensure that they remain satisifed with their current
status.
Al St.Onge
PAC-3 Investment Club, LLP

Ronald,
Our club has only 8 members and we started in January of
this year. The problem with inactive (contirbuting only)
members is one which we have been discussing since our
inception. Some of the ideas that we had to deal with it
were: 1) Amend PA to add that if a member wishes to
contribute yet not actively participate, then their voting
priviledges would be suspended for the purposes of purchases
or sale of stocks. 2) Propose a vote of the membership as
to their feelings on the subject whether to allow an
inactive member, or to buyout a member not interested in
contributing. 3) Have the member pay a semi-annual/annual
fee to the club (which would be dispersed into "active"
members valuations). This fee would almost be akin to them
paying into a mutual fund which is basically what they want
to do.
Our club currently has 4 highly active members and 1-2
members who do not contribute to the work effort, much of
that is still due to lack of knowledge on how/where to
research and we all agree that it will/should improve with
time. Good Luck.
John Valvardi
Grant Alchemy Investment Club

You've probably worked this out already,but here goes our
solution. Our members who live out of town and are
unavailable for meetings or any other input for that matter
except by email are considered as full members. However,
because they do not attend meetings, they cannot vote on
stock purchases and, of course, have no benefit of our
research and discussions or our educational seminars. As
long as they continue to contribute to the purchase fund,
they are considered full members. This has worked for us.


RONALD N. HOSKIN wrote:
> Please share with me your experience with inactive members.
> We formed our club in 1999 . We have a couple founding
> members who have come to the conclusion that the work is
> just to much for them. They are two wonderful ladies both in
> ther seventies. They would like to stay in the club as
> inacctive members and contribute every month as usual. We
> did not cover this in our PA. Has anyone dealt with this
> kind of request ?

There was a concern in our club that members who do not
actively participate (vote, decide on stock purchases, etc.)
in the club would be considered "passive" by the 1933
Securities Act. As such, we would be acting as a broker in
their behalf and would need to register. (Now about 90% of
that info about 10 feet over my head ... but perhaps someone
else has run into this.)

Our result is that we conduct a lot of our business
electronically and have out-of-town members teleconference
into monthly meetings.

Jimmy Dickerson
TLP Investment Club


Erica Kott wrote:
> You've probably worked this out already,but here goes our
> solution. Our members who live out of town and are
> unavailable for meetings or any other input for that matter
> except by email are considered as full members. However,
> because they do not attend meetings, they cannot vote on
> stock purchases and, of course, have no benefit of our
> research and discussions or our educational seminars. As
> long as they continue to contribute to the purchase fund,
> they are considered full members. This has worked for us.
>
>
> RONALD N. HOSKIN wrote:
> > Please share with me your experience with inactive members.
> > We formed our club in 1999 . We have a couple founding
> > members who have come to the conclusion that the work is
> > just to much for them. They are two wonderful ladies both in
> > ther seventies. They would like to stay in the club as
> > inacctive members and contribute every month as usual. We
> > did not cover this in our PA. Has anyone dealt with this
> > kind of request ?