His share is worth market value - NOT market value plus what they've put into the engine fund because they've paid for their use of the aircraft and engine in the hourly rate. In that scenario the engine fund is ringfenced.
Sorry Chilli I don't see how you work that. If the aircraft is worth 15,000 and you have £5,000 engine fund then the group assets are £20,000 and a 1/5th share is £4,000 not £3,000, otherwise if you sell the aircraft and close down the group where does the extra £5,000 go? It may be that you bought the aircraft for £20,000 and built up the engine fund, but with the hours flown off the engine the value of the aircraft will be (say) £15,000 instead of £20,000
because of the lower engine life - Just the same as our aircraft has had the engine zero houred so the aircraft is worth a lot more than it was but we now have no engine fund.
Also I would point out that the person selling his share has donated into the engine fund so why should he not benefit from it? The way you seem to have it a new member can buy into a group that is just about to replace the engine, he buys in for £3,000 (1/5th share of £15,000 aircraft), the group replaces the engine from the engine fund and the market value is now £20,000 so he can sell his share for £4,000 - let me know of any group you know that operates like that as I could do with a quick £1,000.
