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DOES YOUR CLUB HAVE SHARE HOLDERS

Discussion in 'Uncategorized Threads' started by break25, Nov 6, 2007.

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  1. break25

    break25 TS Member

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    Some Clubs have Share Holders, if you are one of them:

    How did you portion out the share per member? Longevity, purchase or ?.


    CHAZZ
     
  2. Porcupine

    Porcupine Active Member

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    Great topic! Neither club to which I belong has 'share holders', but I've always thought that it would be a great retention tool. Say a member received one share every year they renewed their membership; maybe they'd think twice about quitting the club if they knew they'd lose their shares (read, 'ownership').

    Porcupine
     
  3. 1Ljutic1

    1Ljutic1 TS Member

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    I think it might be a good idea also. Steve
     
  4. School Teacher

    School Teacher Well-Known Member

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    This is a complex area but here are a few simple observations.

    Shares are evidence of ownership in a corporation. As such, their number and type are defined by a corporation's articles of incorporation, bylaws and actions of the board of directors.

    Many, if not all, non profit corporations are non stock which means that your membership entitles you to share in the club’s activities while you are a member. Due to the non-profit nature of the corporation, an individual cannot accrue or be awarded equity in the corporation. When you terminate your membership, you loose all rights in a non-profit corporation.

    A for-profit corporation normally has stock. Stock has to be issued in accordance with the articles of incorporation, bylaws and approval of the board of directors. A for profit corporation may buy back its stock from an individual or in the open market and then award it to others as a bonus or for other special purposes.

    Golf clubs and country clubs often have special rules about initiation fees and membership. Sometimes they have memberships that function like shares of stock that can be sold or transferred to others. They can also require you to allow the organization to buy back your membership if you depart so that they can control who are members of a country club.
     
  5. 870

    870 Well-Known Member

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    I'm not aware of any law that prohibits all non-profit corporations from liquidating and distributing remaining assets to members. It certainly depends on your state law, but there are different types of non-profit corporations and some of them, at least in some states, do allow for liquidation with distribution of assets to members.
     
  6. W.P.T.

    W.P.T. TS Member

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    I would be guessing but think the ATA was founded and formed somehow along those lines way back when the Life Members had a vote ... I would think the Life Members would of had to vote to give away their rights but some how it got changed ... Personally, I think that any organization that is owned by the members is a great idea because people have more interest in something that they are really a part of ... There are no doubt limitations to how much say so any individual member would or could have ... WPT ... (YAC) ...
     
  7. Roger IL

    Roger IL TS Member

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    No! But they have a lot of can and cup holders.........Roger
     
  8. Joe Potosky

    Joe Potosky Well-Known Member

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    In New York...

    NON-JUDICIAL DISSOLUTION

    Assets received and held by the corporation shall be distributed as required
    by any gift instrument or to a charitable organization or organizations exempt from taxation pursuant to federal and state laws and engaged in activities substantially similar to those of the dissolved corporation.

    Nothing goes back to the members...
     
  9. 870

    870 Well-Known Member

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    Joe:

    For NY that is not an accurate cite for all non-profits. Look at the same info for a Type A corporation instead of Type B, which is what you are looking at.
     
  10. break25

    break25 TS Member

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    Thank you 870. I was about to answer Joe about A & B until I kept scrolling and saw your answer.
    Still looking on how they portioned out.


    CHAZZ
     
  11. break25

    break25 TS Member

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    Joe.

    FYI As of September 1 1970 NY NFP's were changed from a N to TYPE B under NPCL.
    It was treated as a B corporation unless it delivers a Certificate or amends it's charter to indicate a different type.

    Type A includes athletic and Social purposes. Type B includes charitable,educational,scientific and other simalar purposes.
    '
    It is a simple Transfer. Contact NY govt. for forms.

    Hope this helps. 870 will probably confirm this or expand on it.

    Break em ALL


    CHAZZ
     
  12. dogsitter

    dogsitter TS Member

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    My club broke into shares a few years back anybody who was a member at the time got a share. any new members were not share holders they were associated members. Now we are being pushed out by growth, the club is selling for 5 millon dollars, and 48 owners it brings in a nice dollar.
     
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