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Fines paid by clubs

Thanks Bob. We are very similar, no fines, and we have an option to remove a member if they are deemed passive/non-participating. We've never expelled a member, but I have had talks with a couple of members asking them to either become more active, or make room for someone else to join the club - but that was over 15 years ago.

Jimmy

James P. Dickerson  

polymerguy@yahoo.com

TLP Investment Club

From: club_cafe@bivio.com <club_cafe@bivio.com> On Behalf Of Robert Shaw via bivio.com
Sent: Wednesday, February 16, 2022 3:47 PM
To: club_cafe@bivio.com
Subject: Re: [club_cafe] Fines paid by clubs

Our club acknowledges people have other lives and we do not use fines.

We allow up to 5 absences; after that the president is directed by our PA to discuss the intentions of the absent member.

A report will be given to the membership and a vote will be taken.

If this determination is that the member does intend to be an active member they will likely be retained as a member.

If not they will be voted out of the club.

One point here from the SEC:

"Generally, a membership interest is an investment contract if members invest and expect to make a profit from the efforts of others

 If every member in an investment club actively helps decide what investments to make, the membership interests in the club would probably not be considered securities. 

If the club has even one passive member, it may be issuing securities."

"An investment club must register with the SEC as an investment company under the 1940 Act if:

  1. the club invests in securities;
  2. the club issues membership interests that are securities (see above); and
  3. the club is not able to rely on an exclusion from the definition of investment company."

Having passive members has the potential to cause you problems.

Bob

On Feb 16, 2022, at 1:58 PM, Linda via bivio.com <user*32025500001@bivio.com> wrote:

We never had fines. Every member cannot attend every meeting. Life happens. Some had babies, surgery, funerals, winter vacation, bad weather in winter (few members travel 30 miles). Most of our 17 women member use ACH into a checking account.
We aren't strict about stock reports. We all have our phones with us to research.
We meet at restaurant in evening. Fun is most important. I joined to meet other women, learn. Making money is bonus.



Sent from my iPad


On Feb 16, 2022, at 9:20 AM, Colleen Goings via bivio.com <user*15498700001@bivio.com> wrote:

I would like to know if other clubs are still collecting
fines for not attending meetings, or for not having your
report on your stocks for the day. If you do have fines, how
does your club treasurer deal with them? I have been
investing them with the person that paid them, because there
are no classifications for fees. Just wondering how other
clubs deal with this.

Colleen Goings

Our club has been in existence for 22 years, We have always had two types of fines. One is a late fee for paying payments late. The other is for leaving the club prior to 5 years. They are entered into bivio as a fee. No units are purchased, but it does increase the partners basis in the club. We never vote anyone out of the club for not providing reports or non-attendance to meetings. We do have an automatic withdrawal of any members that go beyond 60 days in arrears of payments. They are also charged a 50% penalty of their capital account for an automatic withdrawal. We have only had this happen a few times. They were informed it would be better to just withdraw rather than default into an automatic withdrawal. So the partner is fully aware of the consequences.

Debi

-----Original Message-----
From: club_cafe@bivio.com <club_cafe@bivio.com> On Behalf Of Colleen Goings via bivio.com
Sent: Wednesday, February 16, 2022 7:20 AM
To: club_cafe@bivio.com
Subject: [club_cafe] Fines paid by clubs

I would like to know if other clubs are still collecting fines for not attending meetings, or for not having your report on your stocks for the day. If you do have fines, how does your club treasurer deal with them? I have been investing them with the person that paid them, because there are no classifications for fees. Just wondering how other clubs deal with this.

Colleen Goings
Wow, Debi. 50% fee is harsh. I bet that some of your members are hoping for those 60 non payments since they can benefit greatly by it.
John

On Fri, Feb 18, 2022, 12:17 PM DEBI THORNE via bivio.com <user*10134500001@bivio.com> wrote:
Our club has been in existence for 22 years, We have always had two types of fines. One is a late fee for paying payments late. The other is for leaving the club prior to 5 years. They are entered into bivio as a fee. No units are purchased, but it does increase the partners basis in the club. We never vote anyone out of the club for not providing reports or non-attendance to meetings. We do have an automatic withdrawal of any members that go beyond 60 days in arrears of payments. They are also charged a 50% penalty of their capital account for an automatic withdrawal. We have only had this happen a few times. They were informed it would be better to just withdraw rather than default into an automatic withdrawal. So the partner is fully aware of the consequences.

Debi

-----Original Message-----
From: club_cafe@bivio.com <club_cafe@bivio.com> On Behalf Of Colleen Goings via bivio.com
Sent: Wednesday, February 16, 2022 7:20 AM
To: club_cafe@bivio.com
Subject: [club_cafe] Fines paid by clubs

I would like to know if other clubs are still collecting fines for not attending meetings, or for not having your report on your stocks for the day. If you do have fines, how does your club treasurer deal with them? I have been investing them with the person that paid them, because there are no classifications for fees. Just wondering how other clubs deal with this.

Colleen Goings

John

No one hopes for it. Lol Trust me, these people have been notified over and over again as the time approaches the 60 day deadline. As with most clubs we are looking for people that want to be in the club actively for the long term. We have the automatic withdrawal for those that at 60 days delinquent and we have a sliding scale penalty for those that leave the club prior to 5 years. If they leave the first year it's a 50% penalty. The penalty drops 10% for each year until they reach 5 years. It has worked for us and no one complains about it.

Debi.

From: club_cafe@bivio.com <club_cafe@bivio.com> On Behalf Of John Rice via bivio.com
Sent: Friday, February 18, 2022 1:49 PM
To: club_cafe@bivio.com
Subject: Re: [club_cafe] Fines paid by clubs

Wow, Debi. 50% fee is harsh. I bet that some of your members are hoping for  those 60 non payments since they can benefit greatly by it.

John

On Fri, Feb 18, 2022, 12:17 PM DEBI THORNE via bivio.com <user*10134500001@bivio.com> wrote:

Our club has been in existence for 22 years, We have always had two types of fines. One is a late fee for paying payments late. The other is for leaving the club prior to 5 years. They are entered into bivio as a fee. No units are purchased, but it does increase the partners basis in the club. We never vote anyone out of the club for not providing reports or non-attendance to meetings. We do have an automatic withdrawal of any members that go beyond 60 days in arrears of payments. They are also charged a 50% penalty of their capital account for an automatic withdrawal. We have only had this happen a few times. They were informed it would be better to just withdraw rather than default into an automatic withdrawal. So the partner is fully aware of the consequences.

Debi

-----Original Message-----
From: club_cafe@bivio.com <club_cafe@bivio.com> On Behalf Of Colleen Goings via bivio.com
Sent: Wednesday, February 16, 2022 7:20 AM
To: club_cafe@bivio.com
Subject: [club_cafe] Fines paid by clubs

I would like to know if other clubs are still collecting fines for not attending meetings, or for not having your report on your stocks for the day. If you do have fines, how does your club treasurer deal with them? I have been investing them with the person that paid them, because there are no classifications for fees. Just wondering how other clubs deal with this.

Colleen Goings