Disbanding the club
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Disbanding the club small investment club 6 members one on leave of absent. Have 10 stocks one mutul fund most of the work is done by me. I want to hold on to the stocks. Any suggestions? Jennifer Jennifer Smalls wrote: > small investment club 6 members one on leave of absent. > Have 10 stocks one mutul fund most of the work is done by > me. I want to hold on to the stocks. Any suggestions? > > Jennifer Jennifer: I will assume 1) you have read the information previously posted regarding when it is appropriate to distribute stock to withdrawing members; 2) the other five members agree with your plan and 3) the club does not have sufficient cash currently to payoff the other five partners. The mechanics to execute a distribution where the other five members receive cash equal to the value of their units in the partnership and you receive the stock plus cash equal to the value of your units would be for you to buy additional units with sufficient cash that when added to existing cash provides enough cash to pay off the other five members. Then perform a dissolution of the club and you take your payoff in the form of transferred stock plus cash and the other five partners receiving all cash. Jack Ranby, Treasurer Grants Partners Investment Club |
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