Griffin Speculators Investment Club
Club Rules
Griffin Speculators Investment Club
Rules of the Club
1. The Affairs of the Club
The affairs of the club shall be conducted in accordance with
the letter and spirit of the constitution laid down by the
members. The constitution may be changed by agreement of not
less than 75% of current members of the club.
2. Officers
The affairs of the club shall be managed by three officers -
chairperson, honorary secretary and honorary treasurer - who
shall be elected by a simple majority of members attending
the annual general meeting of the club. These officers shall
resign at the following annual general meeting but shall be
eligible for re-election. If an officer should leave the
club, die or otherwise be unable to carry out his/her duties,
a replacement may be elected at a subsequent ordinary meeting
of members. Other officers may be elected from time to time
to assist the three main officers.
3. Meetings
a) In each year there shall be held 11 monthly meetings and one
annual general meeting, at which all members shall be
entitled to be present and to vote on all matters.
b) Dates and venues of meetings may be varied in accordance with
a resolution supported by a simple majority of those
attending a properly constituted meeting of the club. Such
resolutions and all others must be carried at a meeting where
there is a quorum comprising of more than half of the current
membership.
c) All members shall be given at least 5 days notice of dates
and venues of meetings.
d) A special general meeting may be convened by not less than
three members for the purposes of resolving special items of
club business subject to a written request being submitted
to the secretary who will without undue delay then give at
least 21 days notice to all members.
4. Membership
In accordance with the constitution the membership of the
club shall not exceed 20 persons at any time.
5. Election Of New Members
a) The election of a new member is conditional upon there being no
objection from a member at the meeting at which the application is
considered.
b) A prospective member must be proposed and seconded by two existing
members at a monthly meeting of the club. Subject to acceptance by
all members attending that meeting the name and address of the
prospective member will be circulated to all members prior to the
next monthly meeting.
c) The club reserves the right to refuse admission to any person
without giving a reason.
d) On admission to the club, a new member will sign an agreement
accepting all responsibilities associated with membership. The new
member shall pay the initial lump-sum subscription and the first
month's subscription. These sums will purchase for the new members a
number of units calculated according to the club rules and the unit
price prevailing at the time of joining.
6. Withdrawal Of Membership
a) A member shall cease to be a member of the club if he/she is in
contravention of Clause 15 of the constitution.
b) If a member should die or cease to be a member for any reason, the
club shall pay to the member or to persons entitled by law an amount
equal to the former member's share in the assets of the club as
defined in Rule 11.
7. Initial Lump-Sum Subscription
a) All members will pay a joining fee of £50.00 which will rank
on par with monthly subscriptions in that it will purchase for that
member an appropriate number of units according to the unit value
at the time of joining.
b) This fee may be varied at the club's annual general meeting.
c) All members will pay an initial fee of £5.00 to cover initial
administration costs.
8. Subscriptions
a) A subscription of a minimum of £10.00 per calendar month which may
rise in multiples of £10.00 to a maximum of £50.00 per calendar
month shall be paid into the club's bank account by all members on
or before the 20th day of each month by standing order from a bank,
building society or similar source.
b) Each member's subscription will purchase for that member an
appropriate number of units according to the unit value declared at
the monthly meeting preceding the date when the subscription was
paid, subject to club brokerage if such should be in force at the
time.
c) The treasurer shall notify members at the monthly meeting if any
member is in arrears.
d) The monthly subscription and the level of the club brokerage may be
varied at the club's annual general meeting or at special general
meeting.
9. Capital Account
a) The club's assets shall be valued monthly by the treasurer and a
report shall be presented at the next meeting. The value of
investments shall be based on the "middle" closing prices recorded
in the Financial Times or other reliable source of share price
information.
b) The treasurer's monthly report shall include as a minimum: the
current value of each of the club's investments together with a
total value of such investments; a statement of unpaid accounts and
cash in hand on the aforesaid day; the total value of the club's
assets and the current unit value which shall be determined by
dividing the total net asset value by the total number of units
issued to members.
10. Members' Accounts
An account shall be kept for each member of the club showing: the
total investment made by each member by means of subscription,
initial lump-sum and/or additional purchases of units; the total of
withdrawals made by each member who has sold back units to the
club; the total number of units currently held by the member and
the current value of his/her holding.
11. Member Leaving The Club
a) Resignations of membership must be submitted in writing to the
chairperson, treasurer or secretary not less than seven days before
the monthly meeting at which the resignation is to take effect.
b) Members leaving the club, whether by resignation or as a result of
termination of membership under Rule 6, ahall sell back to the club
their entire holding of units.
c) The amount to be paid to a member leaving the club shall be
calculated by multiplying the total number of units held by the
member by the unit value declared by the treasurer at the club
meeting at which the resignation became effective, subject to
deduction of club brokerage if such be in force at that time and
any legal fees incurred by the club in connection with the
withdrawal of the member. Any surplus cash held to the member's
credit will be added.
d) Payment to the member who has left the club shall be made as soon
as possible and in any case within 90 days of the resignation
becoming effective.
12. Selling Units
a) A member may withdraw part of his/her investment in the club by
selling back any number of units purchased provided that this
action does not reduce his/her holding to less than 100 units.
b) A member wishing to sell back units shall give notice prior to or
at the monthly meeting of the club, specifying the number of units
to be sold back. This notice may not be amended or withdrawn after
the meeting except in accordance with rule 12(f).
c) The amount to be paid back to the member shall be determined by
multiplying the number of units being sold by the unit value
declared at the monthly meeting following notice being given. This
will be subject to club brokerage.
d. Payment to the member in respect of selling back units to the club
shall be made not later than 90 days following the monthly meeting
at which this was agreed.
e. A member may not sell units back to the club until he/she has
accrued more than 100 units.
f. Where, due to the unpredictable nature of the investment markets,
repayment due to a member in respect to the sale of units back to
the club would exceed the total net asset value of the club, then
the club shall be wound up in accordance with the rules in
existence at that time. Under such circumstances the chairperson
may invite the member to reconsider his/her decision to sell.
Purchase Of Additional Units
g. A member wishing to purchase additional units shall give notice of
this intention prior to or at any monthly meeting. This transaction
must be approved by a simple majority of members at the meeting.
h. Once this request has been approved it may not be rescinded or the
amount varied.
i. The additional investment shall be treated in the same manner as
subscriptions in that it will purchase the appropriate number of
units based on the unit value declared at the meeting.
13. Running Costs
No member of the club shall be compensated for providing services
to the club. Expenses incurred in managing the club shall be
recorded in the club's cash account which shall be funded from the
club's subscription and other income. The treasurer shall maintain
a full and accurate record of all expenditure to submit to the
auditors annually.
14. Banking
a) The club's bank/building society shall be determined annually at
the annual general meeting but may be changed by agreement of a
majority of members at a special general meeting called in
accordance with Rule 3.
b) All cheques drawn on the club's account(s) shall require any two of
five authorised signatures. Where possible one of the signatories
of the cheques should be the chairperson. In the event of one
authorised signatory being unavailable for an extended period, the
officers of the club may authorise a further signatory for the
period involved. All income shall be paid direct into the club's
bank/building society account(s) except where members have approved
an arrangement whereby their stockbroker retains funds from the
sale of one or more investments pending the purchase of other
investments.
c) The club's bank/building society shall be instructed not to grant
any overdraft facilities to the club.
15. Brokers
The club's brokers shall be instructed that
a) Only two named officers are authorised to buy or sell investments
on behalf of the club.
b) No member is authorised to commit the club beyond the cash held by
the club.
c) All cheques due to the club's account are to be made out payable to
the club's name on non-transferable cheques.
16. Commitments
No club member shall make any commitment on behalf of the club or
commit club funds without written authorisation to do so.
17. Amendment Of Rules
The rules of the club may be amended or rescinded at a general
meeting of the club subject to agreement by at least 75% of members
present.
18. Minutes
Minutes of the club meetings shall be kept and shall be available
for inspection by any member of the club at any reasonable time.
19. Disputes
a) Any disputes as to the interpretation of these rules shall be
decided by the chairperson unless notice is properly served
requesting that the matter should be resolved by a special general
meeting of club members.
b) Any disputes relating to the valuation of a member's shares in the
assets of the club or his/her entitlement to that share shall be
decided by a chartered accountant (to be appointed by the
chairperson of the club) of at least seven years' standing whose
certificate of decision shall be final. Fees incurred in obtaining
this decision shall be paid by the party to the dispute against
whom the decision is made or, in the case of this not being clear,
the fees shall be shared between the club and the member or
ex-member concerned.
20. Winding Up
The club shall be wound up and all assets divided among members
(after payment of club expenses) in accordance with the number of
units held by each member if a resolution to that effect is passed
by at least 75% of the members at a special general meeting of the
club.
21. Tax Liability
Membership of the club implies acceptance of proportional tax
liability on trading profits made by the club in any tax year.
22. Decisions
Decisions made at all meetings will be made on a one member one
vote basis.
23. Club Brokerage
An internal brokerage fee of 2.5% will be applied to all
withdrawals.