[Dman]

How do syndicates sort out purchasing an item for the group plane if one of the members can`t or won`t contribute to the cost.
I get the fact that there has to be a majority for the purchase to go ahead ( which there is)
But if there is not enough in the kitty, can someone be forced to stump up for something they don`t want ?

[rikur_]

Not sure this helps.... but in my limited experience this is one of the fundamental principles to agree when establishing a syndicate, or joining one.

[Iceman]

Hopefully, that is a principle that you’ve established in the group rules, agreed and signed by each member. Failure to then comply with those rules means that the member is expelled from the group and his share sold.

Iceman

[Rob P]

If he's a valuable member in temporary difficulty (can't), then quietly reduce the value of his share by the same amount, restoring it when he/she has found another job or whatever.

If he isn't a particularly valued member and has no issues (won't), then as above ^^^^^

Rob P

[Paul_Sengupta]

Get the treasurer to put the charges up a bit until the group funds cover the purchase.

[Paul Stout]

if an safety issue or a must have, then a simple majority subject to the rules, if it is a nice to have item and is not covered in the group agreement then unfair to ask members to contribute who don't want the upgrade

[Flyin'Dutch']

Do whatever you want if you want the group to stay together, or chuck them out if you don't.

As Rob wrote above, it really is that simple.

Groups only work when the noses all point in the same direction; sooner or later there will be trouble if they don't.

[Maxthelion]

This problem is why running a decent (say £15k +, depending on the aeroplane) kitty is important. You do however then run the risk of idiot leavers arguing that their share of the kitty should leave with them.

Luckily, our syndicate of 8 has a decent kitty, and we all want more or less the same equipment and maintenance levels on the aeroplane. I think if we had a member who was reluctant to cough up when a cash call happened then we would do everything we could to make things easier for them, including not going ahead with the purchase unless it meant the difference between maintaining airworthiness and not.

[Maxthelion]

How do syndicates sort out purchasing an item for the group plane if one of the members can`t or won`t contribute to the cost.
I get the fact that there has to be a majority for the purchase to go ahead ( which there is)
But if there is not enough in the kitty, can someone be forced to stump up for something they don`t want ?

In the spirit of a little more context, can you tell us what the item is that you want to buy and what the driving reason is for buying it?

[rdfb]

This problem is why running a decent (say £15k +, depending on the aeroplane) kitty is important. You do however then run the risk of idiot leavers arguing that their share of the kitty should leave with them.

Why would this be an issue? Share valuation at buy-in time incorporates available cash, doesn't it? And they've been paying in their share of unspent cash, haven't they? So why shouldn't they get it back? Presumably a replacement share buyer would also buy in on the same terms, so it shouldn't make any difference to the group?

I have no experience in participating in an equity share group (I rent, with a monthly retainer), but from an accounting perspective I'm genuinely confused as to how you expect this to work any other way.

[marioair]

We have this exact problem around doing an avionics upgrade. We have 50% VFRers and 50% IRs so can get tricky agreeing where to spend.

[Iceman]

And that is precisely why it’s so important to only sell shares to the correct, likeminded pilots in the first place.

Iceman

[Maxthelion]

This problem is why running a decent (say £15k +, depending on the aeroplane) kitty is important. You do however then run the risk of idiot leavers arguing that their share of the kitty should leave with them.

Why would this be an issue? Share valuation at buy-in time incorporates available cash, doesn't it? And they've been paying in their share of unspent cash, haven't they? So why shouldn't they get it back? Presumably a replacement share buyer would also buy in on the same terms, so it shouldn't make any difference to the group?

I have no experience in participating in an equity share group (I rent, with a monthly retainer), but from an accounting perspective I'm genuinely confused as to how you expect this to work any other way.

The money paid into the group via a monthly sub is to cover maintenance (and permit renewal, insurance, parking). Maintenance becomes necessary partly as a result of hours accumulated on the aeroplane. In effect, that monthly charge is part of what you pay for the wear and tear you have put on the aeroplane. Just because the moeny has not yet been spend on maintenence at the point you're leaving the group, doesn't invalidate the wear and tear you put on the aeroplane and entitle you to a chunk of cash back out of the kitty.

If groups were run that way then people would just leave and take their cash with them whenever a big item needed payiing for. I'm sure you'd feel hard done by if you bought a share in something only to be told that you needed to cough up another £5k because the engine needed a rebuild and the previous owner of your share and user of that engine had elected to leave the group and take his share of the kitty with him.

[Sooty25]

....unless that was reflected in the purchase price of the share.

[VRB_20kt]

Horses for courses. Syndicates are essentially about people - the aeroplane is almost incidental. If the syndicate members enjoy commonality of thought then it’s likely to be harmonious whatever comes to pass.

I imagine that members of a £½ million group have very different expectations from those in a £50k group.