OMEGA INVESTMENT CLUB
STANDARD OPERATING PROCEDURES (SOP)
(rev: 26 Feb 04)
ARTICLE I - Conduct of Club/By-Laws/Partnership Agreement
1. As a general guideline, National Association of Investment Club (NAIC) methods shall be used for presenting new stock purchase recommendations.
2. The partnership agreement shall be signed at the first meeting following the inauguration of new officers.
ARTICLE II - Organization
1. Officers - In the absence of one of the officers ffrom a club meeting, the Vice Officer shall serve in that capacity for that meeting. If both the primary and vice officer are absent the seniority of President, Treasurer, and Secretary followed by their respective vices will preside.
2. Election - A nomination committee shall be appointed at the March meeting and report their nominations at the April meeting. Officers shall be elected at the May meeting, take office at the June meeting and serve for one year or until new officers are elected.
General Guidance for the nominating committee is to nominate members into office:
a)
that meet requirements set in the by-laws.
b)
that are active in the club.
c)
that have good attendance.
3. Officer Duties
Elected officers are responsible for duties stated in the by-laws in addition to the following.
The President shall:
a)
nominate an audit committee. A copy of the audit report shall be submitted to the president when signed by all members of audit committee who conducted the audit.
b)
appoint a committee which includes the Treasurer to prepare annual income tax report during the month of January.
c)
assign two portfolio managers for each stock (or investment) owned by the club.
The Vice President shall: Prepare the annual partnership agreement for signature by the members.
The Secretary shall:
The Vice Secretary shall:
a)
Calculate the units needed for voting at each meeting if the Vice Treasury is absent.
The Treasurer shall:
a)
not be assigned a portfolio during his tenure.
The Vice Treasurer shall:
a)
Calculate the units needed for voting at each meeting.
ARTICLE III - Membership
Partners voting shall be restricted as stated in the By-Laws.
1. Active Member Limit
a)
Membership shall be limited as stated in the By-Laws.
2. Guests
3. New Member Nomination
4. New Member Approval
a)
Voting for acceptance of a new member shall not occur until the prospective member has attended two meetings.
5. New Member Acceptance
a)
The initial investment for new members shall be a minimum of $300.00. This shall be considered the first month’s investment.
b)
The minimum monthly investment for new members shall be $50.00.
6. Inactive Members
a)
Inactive members responsibilities are stated in the By-Laws
7. Resignation
a) Upon a resignation or withdrawal request, the club will attempt to minimize brokerage commissions, but this shall not preclude the membership from selling multiple securities as voted upon by the partners in attendance
8. Expulsion
ARTICLE IV - Procedure
1. MEETINGS
a)
Meetings will normally be held at Advanced Information Engineering Services (AIES) on the forth Thursday of the month. Meetings will start at 1900. The host may choose to change the meeting place.
b)
The schedule for hosting each meeting will be sequenced alphabetically in-turn through each active member.
c)
The Secretary will notify members if the normal meeting place or time has been changed.
2. Operations
a)
Members delinquent in dues shall be subject to an automatic fine of $20.00. Members are delinquent if the monthly dues have not been received by the Treasurer by noon (1200) the day following the meeting.
b)
The presenter will provide the club with work-up information, discuss the potential of the stock, prior to recommending a buy.
INDIVIDUAL INVESTMENTS
a)
Monthly minimum investment "contribution" is $50.00.
b)
Money paid in advance to cover the minimum investment for two or more months will not be credited to the individual's account until the applicable statement dates. For example; Member gives treasurer check sufficient to cover next three months dues--then one-third (1/3) of total would be credited each month.
c)
If a member gives the treasurer money (other than for monthly minimums or for above advance payments) after the dues collection delinquency date but prior to the next valuation statement date, the treasurer would accept the money and credit it to the partner's account with units based on the next evaluation.
VALUATION REPORT
a)
The stock valuation date is established as the second Friday of the month
PROXIES
There will be no proxies. Members shall only be allowed to vote their shares.
VOTING
a)
A stock becomes a voting action by recommendation of portfolio manager or by a seconded motion from the floor. The number of shares may be specified as part of the recommendation or motion.
b)
When more than one buy or sell recommendation is eligible for voting, all are voted simultaneously. If none carry, the lowest is dropped. Repeat until one or more carry.
c)
Units for action shall be a simple majority of the active units for the meeting, calculated using the following:
d)
Units for action will be calculated based on the members present no later than 15 minutes after the start of the scheduled meeting. If a member is not present at that time (or prior), their units will not be included in the calculation and they will not be allowed to vote at that meeting.
a. Total units tttt
b. Less inactive units iiii-
c. Equals active units aaaa (aaaa x 20% = limit)
d. **Times factor x ff
e. Equals pppp
f. Less limited total units 1111-
g. Equals voting units vvvv
h. Divided by 2 (x 0.5) x0.5
i. Equals units for action uuuu
**Step d. factor (ff) is:
Multiple by If # persons over limit is
1.2 1
1.4 2
1.6 3
1.8 4
