Bongran Investment Club
Proposed Initiation plan
December 5, 2010
BONGRAN INVESTMENT CLUB (BIC) LLC
WHAT IS AN INVESTMENT CLUB
An investment club (sometimes called a stock club) is comprised of individuals who
pool funds in order to make investments that would otherwise be beyond their
means. That is, they buy stocks - and in most cases, they research these stocks well.
Investment clubs are generally social groups of like-minded people who want to see
their money grow.
Usually, investment clubs are run in a democratic fashion. Members, as a collective,
elect their officers (which usually consist of a president or spokesperson, a treasurer,
and so forth).
They also vote on stocks, bonds or securities - which they want to purchase, how many
they want to buy, whether or not they want to sell, whether or not the interest rate is
conducive to a comfortable amount of growth.
What is an investment club cont’d
• Investment club members delegate who researches
which stocks or investment and research can consist
of any number of different methods:
• All investment club’s membership must all
participate in the purchase and sell of investment
stakes.
• Members will contribute capital (cold, hard cash) on
a regular basis. Whether or not this is weekly,
biweekly, monthly, bimonthly, or so forth, will
depends upon the club rules put in place.
BIC STARTUP PROCESS
• We will float the idea to the group that may want to be
involved in BIC. If you have a definitive game plan and
the members on board all share the same goal then
you have a much better chance of success.
• Choose like-minded investors/members. People who
subscribe to the idea behind the investment club
RULES AND REGULATIONS
• Treasurer and Secretary will need to be
formally elected/appointed. This is something
we do not want to mess around with and as
such it helps to be completely and fully aware
of all the laws surrounding this type of activity
AREAS OF ACTIVITY
• Areas of involvement will be determined by all club members
once the threshold capital buildup has been met which allows
the club to start exploring investment activities. A few areas
that BIC will explore investment opportunities involve (but not
limited to) the following:
• - Real Estate (property development, land development, etc)
• -Contracts
• -Supply Agreements
• -Transportation
• -Brokerage services
• -Trading in agricultural commodities such (corn, beans, coffee,
cocoa, etc)
• -etc
INVESTMENT CAPITAL TRESHOLD
• - 5,000,000 FRS CFA (five million francs CFA). This is the money
we envisage to have as threshold capital before we actually
begin to consider projects to invest in.
• -Time frame during which we should be able to meet our
threshold capital is 18 to 24 months.
• -During the initial capital build-up phase we will hold the
money in a long term deposit savings account (with highest
interest rate). We should explore using credit unions because
they offer us a better engines of raising extra capital when we
begin investment activities.
• -Opt out during the period of initial capital build up is
impossible. During the build up phase if a participant should
elect to opt out then he has to wait till the time of maturity
fixed by the entire club members as period during which no
withdrawals can be made.
SHARE VALUE
• - 10,000FRS CFA PER SHARE
SHARE TYPES
• We propose that we have the following types of share:
• 1) Golden shares held by subscribed members
• 2) Ordinary shares held by second parties following
purchase from public when floated
MEMBERSHIP AND SUBSCRIPTION POLICY
• -Membership primarily open to Bongran members in the initial
stages
• - Signatory and adherence to the rules and regulations of BIC
• - Registration down payment of 10,000 FRS CFA
• - Annual compulsory share build up of 100,000 FRS CFA
MATURITY PERIOD FOR OPT OUT BEFORE INVESTMENT
COMMENCEMENT
• -Eighteen to Twenty-four months from beginning of scheme.
CONFIDENTIALITY AND PROPERTY RIGHTS
• All BIC members will be legally bound by confidentiality agreements
on all matters related to the strategic thinking of the club,
investment opportunities explored and business plans analysis. BIC
members may not abuse of the confidence and trust of the group
by embarking on activities researched, analyzed and proposed by
BIC.
• All information of BIC remains privy information and must be
treated as such. BIC will establish a legal framework that will allow
it pursue any members of third parties in case of abuse of author
rights, copy rights or breach of confidentiality clauses as may be
dictated by the terms of any collaboration.
ENGINES OF RAISING CAPITAL
• We will encourage compulsory savings for all
BIC members after chopping a njangi session
• Constant reminders and encouragement for
BIC members to continually prop up their
share capital
Q&A