Africa Investment Clubs Consultant

  $        Why the Legal Entity ? An investment club is either a legal entity or not. All legal entities are registered with the registrar of companies. Even an entity which is not traditionally a legal entity (like associations, cooperatives and partnerships) can be registered as a legal entity. An investment club ought to be a legal entity. A legal entity is an organization that the law treats as if it were a person, capable of entering into contracts and of being sued and in includes, but is not limited to, an individual (adult and sane), partnership, association, company, corporation and trust. Unlike independent individuals investing directly, an investment club pools money from each member, and hence the need for clarity of rights and duties of the members. The legal entity enables the Investment club to have rules and a constitution to ensure smooth running and for the protection of its members by defining rights and duties of each mem...

  Investment clubs do not usually need to register, or to register the offer and sale of their own membership interests, with the Securities Exchange Commission (SEC) or Capital Markets Authority (CMA). Note that SEC and CMA is used in this book interchangeable to mean same institution. However, since each investment club is unique, each club should decide if it needs to register and comply with securities laws. There are four regulatory statutes that might apply to investment clubs: 1.      Securities Statutes 2.      Investment Company Statutes 3.      Investment Advisors Statutes 4.      Micro finance institutions regulation statutes 5.      Company registration statutes   €        Regulation Under Securities Statutes Under the Securities statutes, membership interests in the investment club may be securities. If so, the offer ...