Investment Club - Conduct of Business

Conduct of Business

In order to operate an investment club, business must be conducted in an orderly fashion. The level of formality will vary based on the club type (see club type). A typical club will have informal channels of communication via mailing lists, Twitter accounts or message boards. In additional to the informal channels of communication, an investment club must set up formal channels of communication to conduct business. Typically, this is done with monthly meetings. A typical meeting agenda will include all the normal activity you would expect in an organization with elected officials. A typical meeting agenda:

• Roll call
• Old business - list of any unfinished business from the previous meeting.
• Summary of votes - Summary of all voted decisions from the previous meeting
• NAV presentation - NAV or the Net Asset Value of the Club will indicate what each club member is worth on paper.
• Available funds - a presentation of Available funds to invest.
• Presentation of current research - each member assigned to present an investment option will present his/her research.
• Vote to hold or invest - A vote to hold cash, sell current assets or invest in one of the investment options
• Investment vote - A final vote on an investment strategy specifying an exact amount to invest and strategy to execute that investment.
• Other business - Typically, other business will include proxy voting needs or other day to day business operational needs. This could also include options to change a brokerage house, or discussions of counter party risk.
• Formal close of meeting