sharetrader
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  1. #11
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    Jun 2006
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    You could set up a company with shareholdings and directorships. Might cost a bit more to set up and administer, but then you know who owns how much, and it's a legal entity for doing your share investing or share trading with. If a member wants to cash out you could just liquidate their portion of their shareholdings and buy them out then cancel the shares.

    If you did it as an informal club and there was a dispute as to what someone contributes or otherwise, it could get messy.
    Last edited by lissica; 28-03-2010 at 04:58 AM.

  2. #12
    Senior Member
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    May 2000
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    New Zealand.
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    At the end of the day, consideration of the costs & benefits involved of the suggestions made should result in a KISS.
    Death will be reality, Life is just an illusion.

  3. #13
    Junior Member JonJ's Avatar
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    Jan 2011
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    I was inquiring about a share club in another post. Thanks to percy for your reply. I'm interested in forming a shareclub too.

  4. #14
    Junior Member
    Join Date
    Apr 2011
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    How many people will be in the club? If there are quite a few members and some that will be in a more senior role than others, then a company may be a suitable choice as you can have the senior members as directors. A limited partnership, if I recall correctly, only affords limited liability to the limited partners who are investors only and do not take part in the management of the partnership. A company is cheap to administer if you have someone who understands the required documentation and how shareholders interact with the directors/company. A company does need to prepare accounts which meet a certain standard. Possibly you could obtain a basic template from an accountant. The best structure really depends on whether you are an organised club with a range of members or a few close mates pooling your funds.

  5. #15
    percy
    Join Date
    Oct 2009
    Location
    christchurch
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    If you have more than 5 members you run into problems of long winded discussions and lack of focus.The more members,the more arguements,disagreements, time wasted, and poor "agreed" investments.We had a halfwit who spent most of the evening arguing over the minutes of the previous meeting. !!! In fact I think he even disagreed with himself.!!!

  6. #16
    Junior Member
    Join Date
    Apr 2011
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    It sounds like if you have more than 5 members you might need some sort of hieracheal structure. There is also always the risk of thefts, disputes, and many opportunities to ruin friendships. One option is to run a club that meets and discusses investments etc. but does not actually invest on behalf of its members. To me it still seems like an interesting concept- each week one member has to present their reccomendation of a stock for example- run it kind of like a toastmasters meeting. It could help to avoid many of the isues that arise when dealing with other peoples money.

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