NAIC Guide Chapter 17 Overview

 

The Club Agreement

 

 

 

Considerations

 

v     Corporation or Partnership

Ø     Each club must take the following into account before deciding on which type of business or club to form.

§       Taxes

§       Personal Liability

§       Transfer of Securities

§       Organizational Costs

§       Maintenance Costs

 

 

Partnership Agreement

 

v     Used to protect each partner and the club

v     Guides the club in following the laws of the state and government

v     Describes the goal, purpose, and how to create, join, terminate, dissolve, and manage the club

v     Outlines what-if situations (violations, value of the club, value of each partner, voting, withdrawls)

 

 

Operating Procedures

 

v     Used to describe in detail the management practices laid out in the partnership agreement

v     Handles meeting times, officer duties, duties of partners, guests, and procedures for accounting and portfolio management.