Investment clubs

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12. The inaugural meeting - appointment of officers

An investment club is run for and by all its members, but in practice some members play a driving role and others take more passive roles.

• The chairman decides the agenda of meetings with the secretary and makes sure that notices are sent out at the right time.
• The most important role he or she has is to control the meetings so that they are focused and do not waste unnecessary time in reaching decisions.
• The chairperson should also make sure that the club is operating constitutionally and within its rules.

• This role is often combined with that of the treasurer. The secretary is responsible for sending out agendas and minutes for meetings.

• The treasurer probably has the most work to do in administering the club.
• He or she is responsible for recording all the transactions of the club and sending out statements to members.

• Once a year the auditor takes the previous year's transactions from the treasurer and checks on the accuracy of the records.

• Some clubs, particularly those that only meet once a quarter, appoint an investment strategy committee. Its role is to take investment decisions between meetings. If the members of the committee believe that the club should sell a share, for example, they have the authority to do that without waiting for a club meeting.

Club rules normally insist on re-election every year, but do not normally prevent any one individual from holding a position in successive years. The Clubs that work best are those where members find roles that they are comfortable with and which fit their skills.

1. What is an investment club? 2. A simple explanation of how it works 3. Why join an investment club? 4. Deciding on your aims 5. Joining an existing club 6. Preparing to launch a new investment club 7. The draft constitution and rules 8. Drafting the investment strategy 9. Example of an investment strategy 10. Attracting members to your club 11. Preparing for the inaugural meeting 12. The inaugural meeting - appointment of officers 13. The inaugural meeting - key decisions 14. Things to do after the inaugural meeting 15. Starting the processes 16. Running the first meeting 17. Regular meetings - the key to success 18. The cash account 19. The capital account 20. The asset register 21. The annual general meeting 22. Tax 23. Performance measurement 24. Dealing with a member leaving 25. Conclusion

• ProShare Investment Clubs Looseleaf Manual
• The Motley Fool Guide to Investment Clubs
• The Company of Successful Investors