Partnership Contributions Considerations
Most clubs require a regular capital contribution by or on a specific date each month. Small, regular contributions will build up quicker than you think. That is one of the benefits of investing as a group.
In addition, it is hard to run an investment club if the partnership cannot count on a regular stream of capital to invest. If someone is going to be in an investment club, they should expect that they will be required to make whatever regular contributions you, as a group, decide you need to operate. They wouldn't join a bowling league and not commit to having access to a bowling ball.
Of course regular does not have to mean monthly. It is fine to specify quarterly or even annual contributions if your members can afford it. This can help to minimize check processing work for the treasurer.
Most clubs specify a minimum monthly contribution but allow flexibility if members would like to contribute larger amounts. There is no reason each member needs to contribute the same amount. The reason for using unit based accounting is the recognition that over a long period of time, there will inevitably be times when a member might not be able to contribute as much as they had in the past. This will only mean they might own a few less shares of the club than someone else. This won't matter. You are in this to learn how to manage a portfolio as a group. The portfolio doesn't care who owns what.
It is up to you how large a percentage of ownership you'd like to allow any one partner. Some use ownership percentage to weight club decisions, others do not. You will see further down in the agreement that in this sample, voting on club manners is done on a one person, one vote basis, unless a special vote by ownership percentage is called by one of the members.
Disclaimer: statements are opinions expressed by bivio Customer Support and are not official statements from any government agency. These statements are not intended to replace professional legal or accounting advice. When in doubt, follow the advice of your lawyer or accountant who is familiar with your particular circumstances and the laws of your state.