Constitution of the Medway MoneyPit Club
This agreement is made this…....day of ……………………in
the year…………between the undersigned people as founder
members for the purpose of joint investments in stocks, shares, bonds,
options, securities and investments of a like nature for their mutual
benefit and interest.
- The first principle of the club shall be that no member shall be deprived
of his/her equitable share in the assets of the club.
- Members of the club shall make regular contributions in such amounts
and on such basis as is from time to time agreed or required by the
rules.
- Members shall be bound by the rules to be determined by members. Such
rules may be varied by majority resolution at a properly convened general
meeting but the rules shall not at any time contravene the principles
of this constitution. The constitution cannot be altered without the
agreement of 75% of the members present at a properly constituted meeting
subject to the quorum requirement of Rule 3 b) being met.
- The club shall deal solely with investments on behalf of its own members
and shall neither deal on behalf of nor advise any persons other than
its own members in relation to investments of any kind. All its activities
will be confined to the mutual benefit and interest of its members.
- Club membership shall be restricted to a maximum of 20 people. New
members shall only be admitted after being proposed and seconded by
two existing members and there being no objection from any other member
of the club.
- No member shall assign, pledge, transfer, mortgage or sell any part
of his/her interest in the club to another member or to anyone else
except as permitted by the authorised procedure for selling back all
or part of his/her interest to the club itself.
- No member shall be compensated for services rendered to the club
and no member shall bind or obligate the club or any member of the club
to any matters outside the affairs of the club, and in respect of the
club’s affairs they shall only enter into agreements on the authority
of a resolution properly passed by members.
- The rules shall determine the procedure whereby a member may resign
from the club and withdraw his/her equitable share of the club’s
assets but the maximum period to elapse between the date of resignation
and the date of full repayment shall not exceed 90 days.
- The club shall hold a general meeting once in every calendar year
as its annual general meeting provided that every annual general meeting
shall not be more than 15 months after the preceding annual general
meeting. The clubs first annual general meeting shall be within 15 months
of its inauguration.
- At each annual general meeting, the members shall elect a chairman,
honorary treasurer and honorary secretary who will resign at the following
annual general meeting but be subject to re-election. Members will also
elect the clubs auditors. If the auditors are members of the club they
shall be at least 2 in number and shall not be executive officers of
the club.
- At each annual general meeting, a statement of account shall be given
by the treasurer, together with the report of the auditors. The treasurers
report shall include a full record of the clubs income and expenditure;
a list of the clubs assets together with it’s end -of -year valuation;
also a capital account for each member showing his/her total contributions
and drawings together with the current value of his/her holding.
- Upon the death of any member the value of his/her equitable share
in the club shall be paid to the executor of the estate in accordance
with the club’s rules for dealing with a member leaving the club.
- The club’s investments shall be registered through a nominee
company provided by a reputable source such as a bank or stockbroker,
OR such investments shall be held in the names of trustees, of whom
there shall be at least two, who will sign a Declaration of Trust, and
who shall be appointed by a resolution of the majority of the club members.
- The club shall open an account with a bank or building society and
all club monies shall be paid into this account except in so far as
monies from disposal of investments may be retained by the club's stockbroker
pending reinvestment. At least two of the club’s officers or members
nominated by the club for this purpose must sign all cheques and the
bank/building society shall be instructed accordingly.
- If any member should assign, charge or otherwise encumber his/her
share in the club as prohibited by clause 6 of this agreement, he/she
shall be expelled from the club. If any member shall become bankrupt,
insane or otherwise incapable of taking part in the club’s business,
OR shall act in any manner inconsistent with the good faith observable
between members, OR shall be guilty of any conduct which could injure
the good name of the club, OR bring about its dissolution, it shall
be lawful for other members to notify the offending member in writing
that members shall consider his/her expulsion from the club. A member
being issued with such a warning shall be given an opportunity to offer
other members any explanation as he/she considers desirable.
- A member shall be expelled if ALL members present at a properly constituted
meeting of the club support a resolution to that effect. A member who
is expelled shall be notified in writing and shall have his/her equitable
share of the club assets returned in accordance with the rules of the
club.
- It is an express condition of membership to the club that all members
agree to the terms and conditions laid down in this constitution and
the accompanying rules.
As amended 7 July 2004
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© Medway MoneyPit 2002-2007