How to transfer stock to withdrawing members of a club.
Recently Tim K. Kessler asked ...
Our club's by-laws allow the transfer of securities to a withdrawing member. However, most of our members do not have brokerage accounts and invest in the stock market only through our club.
How does a club handle a withdrawal for a member without a brokerage account:
1. Request/demand that the member opens an account?
 2. Sell securities and incur brokerage fees and forget about transferring securities?
Each member of your club has agreed to your club's partnership agreement and by-laws when they joined the club.   Therefore, each of them knew that they may  receive securities instead of cash upon withdrawal.  
My club has a similar provision in its partnership agreement and we do normally transfer appreciated stock to withdrawing members.   We can and do have our broker transfer the stock directly between the club's brokerage account and that individual's account.   This is normally the easiest and most cost effective method if that person has an account at the same broker.  On the other hand, if the withdrawing member does not have nor does not want to open an account at the same broker as the club, we can have our broker issue a certificate to the withdrawing member or transfer shares to the withdrawing members account at another broker.   Recently we had a couple of members withdraw.  Neither had an account at our broker, so they opened an account.  That was a free and easy process.  Then we simply directed our broker, in writing, to transfer a specific number of shares of a given security to each withdrawing member's account.   
Once the shares were transferred the withdrawn members were free to sell those shares, retain those shares, transfer those shares to another account/broker of their choosing, request that a certificate be issued, or, if sold, withdraw the cash from the brokerage account.   In other words, opening the account was a very simple process and, after doing so, each withdrawn member had complete control of their assets to do with as they saw fit.
Provided a club's partnership agree allows the payment of a withdrawal in securities, if the withdrawing member refuses to provide the club with an account to which the club can transfer shares to pay off a withdrawal, I would recommend that the club simply issue the withdrawing member shares in certificate form and let them deal with the certificate from there.
Thanks for using bivio!
Jerry Dressel
St.Louis, Missouri