Most NAIC investment clubs are organized as a general partnership. The way such clubs operate is spelled out in two important club documents: a Partnership Agreement and By-Laws. The club partnership agreement describes core operating principles of the club. These are things that would generally be changed only rarely, if ever. An example partnership agreement from BetterInvesting is available here (and here as a Microsoft Word document). Note that this example was prepared several decades ago and some of it's provisions no longer make as much sense as they did originally (click here to see an example partnership agreement with updated language). Click here for further discussion of the club partnership agreement. The club by-laws describe aspects of operating a club that may need to be changed more often. The reasonfor this is that the by-laws are generally more easily amended than the partnership agreement. Details about monthly meeting dates, valuation dates, a minimum monthly investment amount, and detailed voting procedures are examples of things that may be more appropriately spelled out in by-laws than in the partnership agreement. Click here for further discussion of club by-laws. There are numerous operating principles and issues that should be addressed in either the club's partnership agreement or its by-laws. Following are some examples (click on any of them to go to a discussion of that topic):
CommentsI think it is important to note that some clubs use By-Laws to highlight their day-to-day (meeting-to-meeting) operations, and some clubs use Operating Procedures to do the same thing. Either term is appropriate, as they appear to be interchangeable, and I think it would be good to use both in the text.
Our Club uses Operating Procedures, as this is the title and form we were provided when we formed in 1993. Al Molter Comment on this Page Last Modified 2009-04-30 |
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