Our club has some members who wil be out of the country for about a year, and would like to remain in the club.    The club is having a discussion on how to address this situation.  With the members not able to attend the meeting, the club may have a conflict with meeting a majority of active members to condut business. 

One thought is to define an inactive status for those individuals, stating a definite time they would be gone, suspending their contribution requirements, suspending the voting rights, and removing them from active participation during the period of absence.  At the end of the indentified period, they would have a requrement  to be actively involved before returning to  contributing member status.  If they do not return within the given period, are not active after the period, they would be considered as to have resigned. 

What are the possible issues with handing  absent members in this situation?

What are other possible ways to address this issue??

Thanks,

Ralph Futch

As far as voting, you can have no proxy voting. If you want to vote you must be in attendance. Put that in your operating procedures. That's the downside of an investment club, where you can't have a verbal agreement. Parties acknowledge that they cannot attend because of their circumstances, so why not ask for a time frame. if they chose not to return to the club at that time give them a reminder letter of the verbal agreement and ask them to return or submit a resignation.

Ralph,

Everyone's circumstances are different, and the nice thing about a democratic partnership is that majority rules.  If your remaining members are comfortable giving these people extended leaves, they so be it.  Just don't take away their right of ownership.

But I'm concerned about the length of absence and the fact that so many members are leaving that you could lose your quorum.

We love our friends and we all want to accommodate them, but in order to have a successful club, you need to put the best interest of the club above the needs of these individuals.  A year is a LONG time.  People change.  Their circumstances change, too.

In 14 years of clubbing, I've seen plenty of leaves in my clubs and in others, and of all those people, only one came back.  The odds are not in your favor. 

So do what is best for the club and you won't make the wrong decision.  That could mean keeping them.  But if the rest of us were voting, I think we veterans agree that you should have them withdraw, but leave the door open if they want to come back.  That lets your club operate unencumbered.

Good luck to you,

Lynn O.
Crow River Investment Club
www.bivio.com/crowriver