member signatures on club partnership agreement

Steven V. Shipp on

I'm wondering if anyone can offer me any input on the
following?

We use a partnership agreement very similar to the Better
Investing sample one.

Due to member changes over the years (both in and out), we
have ended up with an agreement that lists old (withdrawn)
partners in the top portion (and bottom signature list), and
doesn't include new partners!

So two things -
(1) We are thinking of eliminating that top listing
altogether to avoid that going out-of-date.

(2) For the signature portion at the bottom, rather than
having a list where each partner just signs on a line by
line basis, we are thinking of having a single sheet for
each member to sign instead.

That sheet would have two sections - the top portion would
contain wording to the effect of "I the undersigned agree
to, and promise to abide by all rules and convenents as
outlined in the partnership agreement". The bottom would be
for outgoing members and have wording to the effect of "I
hereby withdraw from the investments club and by my
signature agree that I have been paid in full for my share
of monies invested".

These aren't exact wordings of course....just enough to give
you an idea. I am wondering if anyone sees any problems or
legal issues with this approach?

Thanks a lot.....steve

Thomas Hardy on

When a member dies, how do you get him to sign the document?
Also, rather than requiring signatures, isn't the partner's
payment of the first investment tantamount to agreement with
all requirements of the partnership, thus obviating need for
ANY signature?

Steven V. Shipp wrote:
> I'm wondering if anyone can offer me any input on the
> following?
>
> We use a partnership agreement very similar to the Better
> Investing sample one.
>
> Due to member changes over the years (both in and out), we
> have ended up with an agreement that lists old (withdrawn)
> partners in the top portion (and bottom signature list), and
> doesn't include new partners!
>
> So two things -
> (1) We are thinking of eliminating that top listing
> altogether to avoid that going out-of-date.
>
> (2) For the signature portion at the bottom, rather than
> having a list where each partner just signs on a line by
> line basis, we are thinking of having a single sheet for
> each member to sign instead.
>
> That sheet would have two sections - the top portion would
> contain wording to the effect of "I the undersigned agree
> to, and promise to abide by all rules and convenents as
> outlined in the partnership agreement". The bottom would be
> for outgoing members and have wording to the effect of "I
> hereby withdraw from the investments club and by my
> signature agree that I have been paid in full for my share
> of monies invested".
>
> These aren't exact wordings of course....just enough to give
> you an idea. I am wondering if anyone sees any problems or
> legal issues with this approach?
>
> Thanks a lot.....steve

iras1 on

Having a withdrawing member sign isn't necessary. The withdrawal letter combined with the club records of the payout is sufficient. However, new partners should sign a document when they join that indicates that they understand their rights and obligations. If they don't, they could claim that they joined on the promise that their investment was going to earn double in a year or some other fanciful idea.

Ira Smilovitz

Join me at InvestEd 2010

Investor Education at Its Best^TM
Baltimore, MD August 6 - 8, 2010
http://www.investor-education2010.org/

In a message dated 04/13/10 22:12:02 Eastern Daylight Time, cic@bivio.com writes:

When a member dies, how do you get him to sign the document?
Also, rather than requiring signatures, isn't the partner's
payment of the first investment tantamount to agreement with
all requirements of the partnership, thus obviating need for
ANY signature?

Carole Jansen on

When we have a new member join, we have the new member, and all of the then-current members, sign an amendment to our Partnership Agreement. The Amendment states that the existing members admit the new member, and that the new member agrees to the terms and conditions of the Partnership Agreement and other club organization documents.

This might be over-kill, but it also serves to remind our members that we are actually a legal entity, with certain legal obligations......sometimes this is lost in the "club" atmosphere.

Carole Jansen, Treasurer
WISE Investment Club

From: iras1 <iras1@aol.com>
To: The Club Cafe <club_cafe@bivio.com>
Sent: Wed, April 14, 2010 6:55:35 AM
Subject: Re: club_cafe: Re: member signatures on club partnership agreement

Ira Smilovitz

Join me at InvestEd 2010

Investor Education at Its Best^TM
Baltimore, MD August 6 - 8, 2010
http://www.investor-education2010.org/

In a message dated 04/13/10 22:12:02 Eastern Daylight Time, cic@bivio.com writes:

When a member dies, how do you get him to sign the document?
Also, rather than requiring signatures, isn't the partner's
payment of the first investment tantamount to agreement with
all requirements of the partnership, thus obviating need for
ANY signature?

Cherilyn J. Peay on

Steve,
This is the paragraph we use for signatures because people are in different states. It was given to me by my lawyer.

"The signatories have received the provisions of this agreement and their signature on separate copies of this page shall show their affirmance of this agreement."
The footer of the page shows the name of the Document, date etc.
Don't believe that the names at the top are significant except that they show the "founding" partners. Don't think they need to be changed.

I agree that a letter of resignation/ or request for partial withdrawal and withdrawal report are sufficient for the opposite end of business.

These aren't exact wordings of course....just enough to give
you an idea. I am wondering if anyone sees any problems or
legal issues with this approach?

Thanks a lot.....steve

Cherilyn J. Peay
PO Box 1408
Bernalillo, NM 87004-1408
(505) 867-4379
(505) 867-4224 fax

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