Adding and removing members
Under the bivio Partnership Adding Members Considerations it
Your partnership agreement is an agreement between the
people listed on the signature page to conduct the business
of the group in a specific manner. If this list changes,
legally, the partnership is dissolved and a new partnership
is formed which requires a new agreement between the new
partners. You need to make sure old partners are removed
from the agreement and new partners are added.
On 10/12/2015 I think you answered the question of adding
and losing partners a bit differently.
Most club handle members coming and going with addendums to
their original partnership agreement.
When someone is added, they have them sign a form such as is
When someone leaves, the date of their withdrawal is
recorded with the partnership agreement along with the
meeting minutes where the withdrawal discussion was
finalized and the members request for withdrawal.
Invest with your friends!
Here is the embedded link in the above text.
That's essentially the wording that my club uses.
In a message dated 9/27/2008 8:58:18 PM Eastern Daylight
Time, firstname.lastname@example.org writes:
My club is adding our first new member and I have created an
addendum for him to sign so that the current members do not
have to resign the original agreement. Can I have some
feedback on the wording of this document? Here it is.
ADDENDUM TO THE ABODI INVESTMENT CLUB PARTNERSHIP AGREEMENT
By signing this addendum, [NAME] , is accepted as a member
in the ABODI Investment Club with all the rights and
privileges thereof. [NAME] also agrees to abide by all the
rules outlined in the ABODI Investment Club Partnership
Agreement and Operational Procedures.
Our members have two questions.
Why do you now say this is a dissolution of the partnership
and not just an amendment of the partnership agreement?
Why, if this is a dissolution of the partnership, does the
partnership NOT have to close the books, file a final tax
return, and reopen as the new partnership?
And how should we handle this portion of our PA?
Classic Strategy Investment Club
From a wise long-term friend in the McLean House Investment Club (formed 22 years ago):
"Our Partnership Agreement was drawn up to be a entity that would continue "from year to year unless earlier terminated as hereinafter provided." Furthermore, the Agreement specifically allows for removal and withdrawal of partners and states that "additional partners may be admitted at any given time." The Better Investing website states we can amend the original agreement at any time (which we have done) and it still touts the model of one of its founding members as the model for new clubs to follow. In addition, the sample partnership agreement put online by iclub.com and updated as of October 2018 has language very similar to ours."
This seems to me to obviate the legal need for redoing the agreement that you are describing (an obvious pain-in-the-tush for most clubs).
On Mon, Apr 29, 2019 at 10:42 AM Jim Snow <email@example.com> wrote: