{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Investment Clubs Manual047 - \‘ October 2008 All members...

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: /,\‘ October 2008 - All members of the club should sign the Agreement. - The broker must receive and keep a copy of the club's constitution. - The broker should be provided with the names, addresses and telephone numbers of all officers in the club. - The club should appoint two members (representatives) named on the application form to act on behalf of the club. Only those representatives are authorised to act on behalf of the club and both their signatures are required for all documentation. There are several advantages of this system; paperwork, and thus club administration. is reduced; dealing charges are usually less; the whole process of buying or selling a share is easier and quicker, the problems of having a trustee who goes on prolonged holidays, leaves the club or dies are avoided. Nominees do normally charge a fee for their services and, because the shares are registered in the name of the nominee company, all reports and correspondence from the company in which shares are held are sent to the nominee. Clubs must therefore make sure that they are not only informed when dividends are paid but that they also receive the annual reports and other important correspondence. You should discuss all these points with your chosen stockbroker and spell out exactly what you want at the start of your relationship. 3. Club members as trustees Some clubs choose to appoint two or three members as trustees and register the club's investments in their names. The suggested wording of the recommended constitution covers this option and In Part One an example Declaration of Trust, which the trustees should sign, is given. If a club wishes to be completely democratic it may work on a rota of members so that each In turn becomes the trustee for certain investments However, this system is complicated and costly particularly as the club's portfolio grows and if members leave. It is probably simpler to appoint two or three 'settled’members of long standing and let them act as permanent trustees for all investments. ProShare Investment Club THE MANUAL ...
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern