Investment Clubs Manual040 - Additional charges It is...

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Unformatted text preview: Additional charges It is common for a club to levy a monthly administration charge on members. This is to cover such everyday items as stationery. stamps, room hire etc. Many clubs which have refreshments at their meetings charge a standard amount which is paid as part of the member’s monthly standing order. Done this way, it is a great incentive to attend the meetings! The amount of the levy will obviously vary according to the expenses involved. Always err on the high side then the surplus can be used for a Christmas party or other social occasion. What kind of democracy? Most investment clubs are happy that decisions should be made on the basis of one member one vote and PIC recommends that this course is followed. However, we have heard of clubs which reserve certain major issues to be decided by a poll whereby voting strength is assessed by the number of units held by each member. This is likely to give more power to founder members and others who have retained all of their units over lengthy periods. This is another decision to be made by each club. If the decision is in favour of a poll. the rules will have to be amended accordingly. Joining fees In the model set of rules it is suggested that joining fees should be used to purchase units for the new member. Some clubs have a modest joining fee which goes into the administration kitty and is not used to buy units, in such a case Rules 4(d) and 6(a) will have to be amended. It is also possible for the club to vary subscriptions between members in which case the Rules should be amended. Date of monthly valuation If the treasurer's monthly report is to be sent out to members with the agenda for the next meeting, then a reasonable gap must be left for the necessary calculations. The advantage of having the financial report circulated in advance should be weighed against the desirability of having a report which is as up to date as possible. Clubs may decide to amend Rule 8 accordingly. 0 b 2008 do er ProShare investment Club THE MANUAL ...
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