Club of investment

A club of investment is a tax entity of which the goal is to make bear fruit the Capital invested by its members.

General and historical principle

The principle of operation of the clubs of investment is the pooling of a saving in order to constitute and to manage a wallet of Transferable securities. The first clubs of investment saw the day at the end of the XVIIIe century their goals with always to know and control the economy. At the end of the years 1960, former students of Political sciences created clubs in France.

The principle of the clubs of investment is very widespread, they exist in many countries, in France, the FFCI (French federation of the Clubs of investment) counts close to: 15000 clubs representing approximately: 200000 members who manage more than one billion euros.

Beyond the constitution of a capital, the principal goal of a club of investment is teaching, it makes it possible its members to learn and include/understand the economic, financial and stock exchange mechanisms, with the national plan.

Important points of the creation of a club

It must be made up of at least 5 members with a maximum of 20.
The management of the wallet is done jointly at monthly meetings (in general).

During the first meeting, known as meeting inaugural, the members must choose between two legal forms:

Civil society with variable capital: the choice of this solution is constraining, because it is necessary to make a statement with the prefecture. Moreover, it is necessary to transmit an annual statement of account. It, to tell the truth, is employed any more.
voluntary Joint possession: this solution, not very constraining, was essential. It is enough to open an account at a financial intermediary. The advantage of this formula is to allow the departure or the arrival of members without calling into question the operation of the club.

The members elect an office which is composed, at least, of a president, a treasurer and a secretary.

Always at the time the inaugural meeting, the members validate the statutes governing the operation of the club and approve the countable model. They also choose the name of the club.

It is important to note that it is of a joint possession and not about an association. The statutes do not need to be recorded with the Prefecture. The president of the club preserves the original and a copy gives from there to each member and the financial intermediary.

Operation

A club of investment, officially, is created for one 10 years period. But it is possible to dissolve it front, by complying with the rules defined in the statutes. The members meet surroundings once a month to analyze and define the investments of the club. The decisions are snuff by a vote of the members. The number of voices being defined in the statutes. The good performance of a club depends on its meetings. The implication of all the members of the club is a pledge of success. The course of the meetings is broken up into several parts:

Assessment of the actions and decisions taken at the preceding meetings and analyzes their consequences.
a point of economic situation as well as a presentation of analysis of sector.
Proposal of purchase or sales of values.
Votes of the members in the majority of the ways present or represented.
Definition of the values to be followed for the following meeting.

The taxation

The clubs profit from the tax transparency.

Each member is taxable on his quota of dividends and other products perceived inside the club. It profits n the other hand from the abatements and tax credits attached to this quota.
Tax exemption on the appreciations carried out during the life of the club.
Imposition of the only net profits carried out by the members at the time of their exit of the club or its dissolution, in the event of going beyond of the threshold of transfer of 15.000 EURO (20 000 EURO as from 2007).
the clubists pour a monthly payment of an amount fixed by the statutes. This monthly payment makes it possible to feed the common wallet. The maximum of the payments per annum and by household for tax purposes is fixed, by law, with 5500€.
the appreciations carried out at the time of the withdrawal of a member or dissolution of the club are also exonerated when the amount of the transfers, all confused transfers is, for each member, lower than the amount fixed each year by the finance law. With the top of this amount, they are taxed starting from the first euro at the standard rate.
It is prohibited, for a club of investment, to subscribe to a PEA.

Roles

The president

It animates the debates and the meetings. He is the interlocutor near the financial intermediary, he transmits the Stock Exchange orders.

The secretary

It writes the statements of meetings and dispatches the convocations.

The treasurer

It follows the monthly accounts and collects the monthly payments of the members.
It manages the wallet and calculates the amounts, at one moment T, the value of the shares of the members

The clubist (member)

They make the decisions, at the meetings, the strategy of investment.
Each member has a number of voices proportional to its share in the wallet.

The financial intermediary

It receives the buying orders or with sale of the club, it is given the responsability to make them carry out.
It is charged at the end of the year to establish, for each clubist, the single tax printed paper form (IFU).
It must be informed of any change intervening the life of the club. Departure or arrived members or change of addresses and civil statue of the clubists.

External bonds

French federation of the clubs of investment (FFCI)

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