Future Millionaires Investment Club (FMIC)

Bylaws and Rules of Operation


 
ARTICLE I - MEMBERSHIP

SECTION 1. The total number of partners shall not exceed twenty (20) persons. When a maximum membership of twenty persons exists, a waiting list shall be established. Consideration for membership will be given to individuals based on the date of written notification (email/letter) to the membership committee.

SECTION 2. The terms and conditions for admission of new partners shall be as follows: A prospective new partner must attend two (2) consecutive meetings and submit a written notification (email/letter) to the Secretary for membership in the partnership. Admittance to the partnership shall be determined by an affirmative vote of at least seventy-five (75) percent of the current partners with the following exception: If the total membership is less than ten (10), a new member may join after one (1) meeting upon submission of written notification to the Secretary and unanimous (100) percent decision by all current members. If the exception applies and a unanimous decision is not made after the first meeting, a re-vote may be requested after the second consecutive meeting attended where the seventy-five (75) percent rule will apply. The prospective member shall then be notified of the decision of the partnership by the president or vice-president.

SECTION 3. At the first official monthly meeting of a new member, the new Partner must pay:
1. An initial investment of at least five hundred (500) dollars to the general fund with respect to Article III Section 2.
2. Annual dues as specified in Article IV Section 2.
3. Monthly contribution as specified in Article III Section 2.

ARTICLE II - OFFICERS

SECTION 1. The elected officers and their responsibilities shall be as follows:

A. President - Presides over meetings, appoints committees, executes resolutions and decisions made by the partnership.
B. Vice-President - Takes the place of the President in case of absence or incapacity, keeps a list of potential stocks for study by the partnership.
C. Secretary - Records and reports the minutes of the monthly meetings and keeps the records of all actions authorized by the partnership.
D. Treasurer - Keeps a record of all receipts and disbursements, gives receipts for payments upon request to members, places buy and sell orders, prepares valuation statements.
E. Assistant Treasurer - Assists in the duties of the Treasurer.

SECTION 2. The officers shall serve a one (1) year term from February 1st until January 31st of the next year.

SECTION 3. The membership shall nominate potential candidates for each office at the December meeting. Elections will be held at the following meeting in January. The time between the January election meeting and the February annual meeting will serve as a transition period (if needed).

SECTION 4. If an elected officer other than the President resigns prior to the completion of his/her term of office, a special election will be held to fill the vacancy for the remainder of the term. In the case of the President, the Vice-President shall ascend to the office of the President and will complete the term and a special election will fill the vacated office of the Vice-President.

ARTICLE III - MEETINGS

SECTION 1. Meetings shall be held monthly on the second Thursday of each calender month at 7:00 PM CT, except as modified by a majority vote of the partnership.

SECTION 2. Each partner shall make contributions totaling not less than twenty-five (25) dollars per partner on or before the date of the monthly meeting. Any contribution above the minimum shall be made in increments of five (5) dollars. Maximum contribution shall be limited such that a partnerís capital account does not exceed thirty-five (35) percent of the Clubís total assets when the Club consists of less than ten (10) Partners, or twenty (20) percent when the Club contains ten (10) or more Partners.

SECTION 3. Each partner will have an equal vote, regardless of the percentage of capital. Those partners not able to attend a meeting may delegate their vote by notifying the Secretary prior to start of meeting.

SECTION 4. A five (5) dollar fine will be assessed to a partner when the monthly minimum investment of twenty-five (25) dollars is not received by the Treasurer as stated in Article III Section 2. The Treasurer shall notify the Secretary of the failure to make payment of the minimum monthly contribution and/or the fine for the purpose of inclusion into the minutes of the meeting. This shall constitute official notification of payment due by the delinquent partner. All voting rights shall be forfeited by a member whose account is more than two (2) months in arrears. The fine may be waived and/or voting rights reinstated due to extenuating circumstances as determined by the President and the Treasurer. All collected fines will be credited to the expense account.

SECTION 5. After three (3) consecutive un-notified monthly meeting absences, the Secretary shall send a written notice requesting a response regarding their intention to remain in the partnership. If the absent partner's response is not received by the next meeting, it shall be considered a voluntary withdrawal in accordance with the terms of the Partnership Agreement, with no voting privileges. Official financial settlement of the absent partner's account will not be acted upon until such time as a written notice of withdrawal is received. In order to be fully reinstated, the absent partner must become current with respect to all minimum monthly contributions in arrears as well as all assessed fines.

SECTION 6. An annual meeting will be held in February. At the annual meeting the partners shall be issued the annual report. Any changes to office positions will commence.

SECTION 7. Special meetings may be called by the President or by a majority of the partners. The Secretary will issue written notice to the Partners of the date, time, and location of the special meeting. If called by the Partners, the President shall set the agenda for the meeting in accordance to the Partners' wishes.

SECTION 8. An official club meeting may only commence when a quorum is present. A quorum is defined as two-thirds (2/3) majority of the Partners or the presence of a majority of the Partners and three-fourths (3/4) majority of the Partners via proxy.

ARTICLE IV - VOTING

SECTION 1. The right to vote is limited to active Partners except as specified in Article III Section 5.

SECTION 2. Approved methods of voting are VERBAL, SIMPLE MAJORITY, TWO-THIRDS MAJORITY, THREE-FOURTHS MAJORITY, UNANIMOUS MAJORITY, POINT SYSTEM BALLOT, and PROXY. However, in the absence of a formal motion to conduct a given vote in another manner, all votes shall be carried by a simple majority of the active Partners.

SECTION 3. The above notwithstanding, prior to voting the BUY or SELL of an individual stock, conditions may be nominated to be placed on an individual stock. Each condition will then be voted for on an individual basis as specified in ARTICLE IV SECTION 4 for a BUY or ARTICLE IV SECTION 5 for a SELL. By default, the Treasurer will submit a limit order prior to the market open for the closing price plus (BUY) or minus (SELL) five (5) percent. If the order does not execute at the open, it will remain active until cancelled. In the event of more than one condition passing on an individual stock, the President will decide the condition to apply based on the higher vote total as specified in ARTICLE IV SECTION 4 for BUYs and a simple majority vote for SELLs. If a simple majority is not reached for a SELL condition, the President will make the final decision.

SECTION 4. The above notwithstanding, the general method of voting the BUY of an individual stock will be by a unanimous majority. If two (2) or more stocks are proposed, the point system ballot will be used for ranking. Based on the number of proposals, each Partner assigns the highest number to the most preferred stock and then gives each remaining stock one less point, with the least preferred stock receiving one point. If any Partner does not wish to BUY any given stock, a point value of zero (0) should be assigned to that stock. Any stocks that receive a zero (0) point value will be discarded from consideration. The remaining stocks' point values will be summed up and their totals ranked from highest to lowest. In the case of a tie, the President will decide the final enumeration.

SECTION 5. The above notwithstanding, the general method of voting the SELL of an individual stock will be the THREE-FOURTHS MAJORITY. Each stock still in consideration is then brought up for one of the following, with the majority being executed and ties broken by President:
A. sell twenty-five (25) percent
B. sell fifty (50) percent
C. sell the break-even point, if applicable
D. sell one hundred (100) percent.

SECTION 6. If a Partner is unable to attend a meeting in person, said Partner may submit a proxy statement to the Secretary prior to the meeting.

ARTICLE V - MISCELLANEOUS

SECTION 1. Standing committees may be appointed at the discretion of the President. Potential committees include but are not limited to the following:
A. Nominating Committee - Nominates candidates for office.
B. Telephone Committee - Notifies partners of important business meetings, etc.
C. Membership Committee - Evaluates and advises potential members.
D. Education Committee - Prepares educational programs for presentation to members.

SECTION 2. An expense account shall be established and maintained by the designated Treasurer(s) to cover the cost of accounting software, supplies, postage, and other expenses. All petty cash expenditures shall be reported in the monthly financial statement. Each partner shall pay an annual fee of fifty (50) dollars, payable at the February meeting of each year. Any excess remaining at the end of each year shall be credited to the general fund equally among current members.

SECTION 3. All funds disbursed as a result of decisions made by the partnership shall come from the general fund. In the case of the withdrawal of a partner and the exercise of the option to purchase all or part of his/her account by an individual partner or partners as set forth in the partnership agreement, the purchasing partner or partners shall pay the purchase price to the partnership. Payment to the withdrawing partner will then be made from the partnership account.

SECTION 4. At the end of each calendar year, each partner's capital account shall be valued based on dividends, interest, and capital gains distributions from securities held by the Partnership. Each partner shall be responsible for the reporting of all taxes due based on the income breakdown provided by the partnership. This information will be provided at the annual meeting in February.

ARTICLE VI - INVESTMENT GUIDELINES

SECTION 1. The Club's assets shall be invested solely in stock of individual companies, index mutual funds, and/or depository receipts. While waiting to invest, the Club may keep cash in a money market fund with the Club's broker.

SECTION 2. Dividends shall be retained in the Clubís cash account. A majority vote (Article 9, Partnership Agreement) of the Partners is required to set up automatic reinvestment of any or all dividends.

SECTION 3. Once the Club's assets reach ten-thousand (10,000) dollars, no more than twenty-five (25) percent shall be invested in any one market sector.

SECTION 4. The Club shall not invest on margin.

SECTION 5. These guidelines may be waived on individual transactions upon a unanimous vote of the Partners.

ARTICLE VII - AMENDMENTS

SECTION 1. These Bylaws may be amended from time to time upon majority vote of the total Partners. Amendments shall become part of the Bylaws upon the effective date specified therein.

SECTION 2. If any part of these Bylaws is ruled ineffective or invalid by a court of law, the other parts will remain in full force and effect.

SECTION 3. These Bylaws are effective September 1, 2009.