Capital & Share Transactions - OLD

How do I Authorize Capital or Share Class?

To authorize capital in an existing entity navigate to the Entity Information Summary for that entity and follow these steps:

To Issue shares, the company must first have at least one  Authorized Share Class

Authorizing a Share Class

  1. Click Capital on the table of contents on the left of the screen under the Entity Information Summary heading. Alternately, scroll down the Entity Information Summary until you reach the Capital section
  2. In the Capital section click the Add button. The following screen is displayed
    1. In the Type field, select Equity
    2. Input the Date this class is Authorized in the field provided.
      Note: You can proceed without enter a date but the share transaction will not be applied until a date is set
    3. Choose a classification from the options provided - Common, Preferred or Special. Or type to add your own custom classification

      Note: The Series field is optional -  if the share class is being issued under a series name; e.g., A, B, Bridge, type the series name in this field
    4. Type the Prefix exactly as you want it to appear on your share certificates; e.g., for Common A shares, you may type CA - your share certificates will be numbered CA-1, CA-2 and so on
  3. In the Quantum Authorized field select whether you are authorizing an Unlimited number of shares or a specified amount
    If you choose to authorize a Specific Amount then you should also enter the amount of capital being authorized.

Notes: All other share properties are optional. For maximum flexibility, MinuteBox allows you to add any share property to a class, even those that may not be traditionally associated with a type of capital. A default list of capital properties are available by clicking the add a field button to view the drop-down options. You may also add your own

  1. Click Save when done

What capital properties can I add to an authorized capital class?

MinuteBox supports the following capital classes, which can be added in the  Authorize Share Capital modal by searching for the property in the Add a Property search field:

  • Retractable
  • Retraction price
  • Redeemable
  • Redemption price
  • Certificated
  • Cumulative
  • Proxy voting
  • Votes per share
  • Par value
  • Deauthorized
  • Underlying security (used for creating derivatives)
  • Exercise price
  • Interest %
  • Maturity date
  • Accrual period
  • Qualified financing amount
  • Valuation cap
  • Exit multiplier
  • Fixed conversion %

For maximal flexibility, any property may be added to any capital type. Traditionally, not all properties are appropriate for every capital type, but we do not limit your ability to apply a property to a class. For example, Exercise price is most relevant to derivatives like Options and Warrants whereas Votes per share is most relevant to Equity.

How do I create certificated shares?

To make certificated shares follow these steps:

To authorize capital in an existing entity navigate to the Entity Information Summary for that entity and follow these steps:

Note: To issue share capital, the company must first have at least one  Authorized Share Class.

  1. Set all properties as desired for the capital class
  2. Click the search field next to Add a Property
  3. Select or type to find Certificated
  4. Ensure Yes is selected next to Certificated

The subject class will now be certificated.

If you have already created a class you can simply edit the transaction authorizing the class to make it certificated and certificate numbers will automatically be calculated for all transactions of the class.

How do I issue shares?

To issues shares in an existing entity navigate to the Entity Information Summary for that entity and follow these steps:

Note: To issue share capital, the company must first have at least one  Authorized Share Class.

  1. Click Capital on the table of contents on the left of the screen under the Entity Information Summary heading. If a table of contents is not showing then you can scroll down the Entity Information Summary until you reach the Capital section.
  2. Locate the class of authorized capital that you wish to issue
  3. Click the ••• button located on the right side of the Authorized Capital table next to the class you want to Issue to open the actions menu
  4. Click Issue
  5. For Date select the date of the issuance transaction. You can leave the date blank and complete it later. The transaction will not be applied until a date is set.
  6. For Transfer Number select Auto Number to have MinuteBox automatically calculate the transfer number for the transaction. If you wish to provide a custom transfer number then uncheck the Auto Number option and enter your customer transfer number.
  7. For Recipient click the input field and search for an existing person record. If you wish to issue to a person that does not have an existing person record simply type the name of the recipient and click the yellow Create button. Note: You can edit details for the person, including the phone, email and address by clicking the triangle to the right of the person name.
  8. Enter the Amount of capital you want to issue.
  9. If the capital is certificated, select the certificates strategy you want to use. You can select from Auto, Consolidate or Skip.
  10. Complete the remaining information for the issuance, if desired, and then select Save

How do I manage certificates for capital issuances?

Any capital class may have certificates issued for that class.

To issue certificates for a capital class, that class must have the  Certificates property option set to Yes.
If a capital property has  Certificates set to Yes then you will see a property label Certificated under the Properties heading in the Authorized Capital table for that class.

If you do not see the  Certificated property label then that class is not certificated. You can edit any class to make it certificated by clicking on the ••• action menu next to the class row in the Authorized Capital table and selecting Edit.

If a capital class is certificated you can decide on the certification method When issuing capital. To see the options open the  Issue modal for any capital class by either issuing new capital for that class or editing an existing transaction.

The certificates section will have a selection menu with the options  Auto, Consolidate or Skip, which have the following meanings:

Auto - will calculate certificate changes automatically.

For issuances it will simply issue a new certificate at the next available number, incrementing by 1 each time. For example, for the class Common A shares with prefix "CA", if certificates CA-1 and CA-2 have already been issued then the next issuance will be CA-3.

For any transaction that involves cancelling shares (e.g. redemption, repurchase, retraction, conversions, transfers etc) the system will cancel certificates, as required, in the order that they were issued. For example, if Jane holds CA-1, CA-2 and CA-3. On a cancellation, the system will first cancel CA-1, then CA-2 and then CA-3, as needed in a cancellation transaction. A new certificate will be issued for any balance remaining. For example. If CA-1 has a value of 10 shares and you cancel 6 shares then CA-1 will be cancelled and a balance certificate at the next available increment will be issued for 4 shares.

One exception to the rule of cancelling certificates in the order they were issued is if the amount cancelled matches the face amount of a particular certificate. For example, Jane has 3 certificates, CA-1, CA-2 and CA-3, in the amounts of 20 shares, 15 shares and 100 shares, respectively. If you cancel 15 shares, the system will cancel CA-2 instead of cancelling CA-1 and issuing a balance certificate.

Consolidate

Will cancel all outstanding certificates of a class on a transaction and issue a single consolidated certificate. For example, Jane holds CA-1, CA-2 and CA-3, in the amounts of 20 shares, 15 shares and 100 shares respectively. Jane is issued 32 additional shares.

If the certificate strategy is set to Auto, then Jane will simply be issued CA-4 for 32 shares. If  Consolidate is selected then CA-1, CA-2 and CA-3 will be cancelled and a balance certificate CA-4 will be issued for the aggregate amount of shares held by the individual. In this case CA-4 will be issued for 167 shares.

A certificate consolidation will work the same way if selected for any other share transaction, including cancellations.

Skip 

will simply skip recording of any certificate changes whatsoever on a given transaction.

This is particularly useful, for example, if you are recording a string of share transactions for a single person over a period of time and do not wish to increment your certificates each time.

For example, if you are accounting for 12-months of redemptions for an individual shareholder from January to December, you may wish to skip computing the certificates for each transaction until the last transaction in December. This will ensure you do not increment certificate numbers unnecessarily quick and, in combination with a  Consolidate certificate strategy for the final transaction, can result in cleaner and simpler certificate tracking.

How do I cancel shares?

To  Cancel Shares navigate to the Entity Information Summary for the entity and follow these steps:

  1. Click Capital on the table of contents on the left of the screen under the Entity Information Summary heading. If a table of contents is not showing then you can scroll down the Entity Information Summary until you reach the Capital section.
  2. Locate and view the Shareholders table that has the tabs By Person, By Class and All Transactions.
  3. Click By Class.
  4. Locate the class you want to perform the transaction on.
  5. Click the ••• action menu next to the relevant class name.
  6. Select Cancel.
  7. Complete the relevant details for the cancellation and click Save.

Note: To Redeem, Retract, Repurchase, or Gift shares follow these steps:

  1. Click into the input field next to Reason.
  2. Delete the text Cancel.
  3. Type in the relevant reason for cancellation, i.e. Redeem, Retract, Repurchase, or Gift.

How do I Redeem shares?

To  Redeem Shares navigate to the Entity Information Summary for the entity and follow these steps:

  1. Click Capital on the table of contents on the left of the screen under the Entity Information Summary heading. If a table of contents is not showing then you can scroll down the Entity Information Summary until you reach the Capital section.
  2. Locate and view the Shareholders table that has the tabs By Person, By Class and All Transactions.
  3. Click By Class.
  4. Locate the class you want to perform the transaction on.
  5. Click the ••• action menu next to the relevant class name.
  6. Select Cancel.
  7. Click into the input field next to Reason.
  8. Delete the text Cancel.
  9. Type in the relevant reason for cancellation, i.e. Redeem, Retract, Repurchase, or Gift.
  10. Complete the relevant remaining details for the cancellation and click Save.

How do I Retract shares?

To  Retract Shares navigate to the Entity Information Summary for the entity and follow these steps:

  1. Click Capital on the table of contents on the left of the screen under the Entity Information Summary heading. If a table of contents is not showing then you can scroll down the Entity Information Summary until you reach the Capital section.
  2. Locate and view the Shareholders table that has the tabs By Person, By Class and All Transactions.
  3. Click By Class.
  4. Locate the class you want to perform the transaction on.
  5. Click the ••• action menu next to the relevant class name.
  6. Select Cancel.
  7. Click into the input field next to Reason.
  8. Delete the text Cancel.
  9. Type in the relevant reason for cancellation, i.e. Redeem, Retract, Repurchase, or Gift.
  10. Complete the relevant remaining details for the cancellation and click Save.

How do I Repurchase shares?

To  Repurchase Shares navigate to the Entity Information Summary for the entity and follow these steps:

  1. Click Capital on the table of contents on the left of the sceeen under the Entity Information Summary heading. If a table of contents is not showing then you can scroll down the Entity Information Summary until you reach the Capital section.
  2. Locate and view the Shareholders table that has the tabs By Person, By Class and All Transactions.
  3. Click By Class.
  4. Locate the class you want to perform the transaction on.
  5. Click the ••• action menu next to the relevant class name.
  6. Select Cancel.
  7. Click into the input field next to Reason.
  8. Delete the text Cancel.
  9. Type in the relevant reason for cancellation, i.e. Redeem, Retract, Repurchase, or Gift.
  10. Complete the relevant remaining details for the cancellation and click Save.

How do I Split shares?

To  Split Shares navigate to the Entity Information Summary for the entity and follow these steps:

  1. Click Capital on the table of contents on the left of the sceeen under the Entity Information Summary heading. If a table of contents is not showing then you can scroll down the Entity Information Summary until you reach the Capital section.
  2. Locate and view the Shareholders table that has the tabs By Person, By Class and All Transactions.
  3. Click By Class.
  4. Locate the class you want to perform the transaction on.
  5. Click the ••• action menu next to the relevant class name.
  6. Select Split.
  7. Enter the Numerator in the input field next to Split.
  8. Enter the Denominator in the input field next to for.
  9. Click Save.

For example, to complete a 2 for 1 split, enter  2 in the input field next to Split and 1 in the input field next to for.

How do I Consolidate (or reverse split) shares?

To  Consolidate (or reverse split) Shares navigate to the Entity Information Summary for the entity and follow these steps:

  1. Click Capital on the table of contents on the left of the sceeen under the Entity Information Summary heading. If a table of contents is not showing then you can scroll down the Entity Information Summary until you reach the Capital section.
  2. Locate and view the Shareholders table that has the tabs By Person, By Class and All Transactions.
  3. Click By Class.
  4. Locate the class you want to perform the transaction on.
  5. Click the ••• action menu next to the relevant class name.
  6. Select Split.
  7. Enter the Numerator in the input field next to Split.
  8. Enter the Denominator in the input field next to for.
  9. Click Save.

For example, to complete a 1 for 2 share consolidation, enter  1 in the input field next to Split and 2 in the input field next to for.

How do I Convert shares from one class to another for a single shareholder?

To  Convert shares from one class to another navigate to the Entity Information Summary for the entity and follow these steps:

  1. Click Capital on the table of contents on the left of the sceeen under the Entity Information Summary heading. If a table of contents is not showing then you can scroll down the Entity Information Summary until you reach the Capital section.
  2. Locate and view the Shareholders table that has the tabs By Person, By Class and All Transactions.
  3. Click By Class.
  4. Locate the class you want to perform the transaction on.
  5. Click the ••• action menu next to the relevant class name.
  6. Select Convert.
  7. Select the Individual tab at the top of the modal.
  8. Enter the relevant details for the conversion.
  9. Click Save.

How do I Convert shares from one class to another for all shareholders of a class?

To  Convert shares from one class to another navigate to the Entity Information Summary for the entity and follow these steps:

  1. Click Capital on the table of contents on the left of the sceeen under the Entity Information Summary heading. If a table of contents is not showing then you can scroll down the Entity Information Summary until you reach the Capital section.
  2. Locate and view the Shareholders table that has the tabs By Person, By Class and All Transactions.
  3. Click By Class.
  4. Locate the class you want to perform the transaction on.
  5. Click the ••• action menu next to the relevant class name.
  6. Select Convert.
  7. Select the Everyone tab at the top of the modal.
  8. Enter the relevant details for the conversion.
  9. Click Save.

For example, to convert every 3 shares of the subject class to 5 shares of another asset, enter  3 in the input field next to Convert Every and 5 in the input field next to Convert To. For the Convert To class, make sure to also select the target class that you want to convert to.

Note: If the classes are certificated then certificates will be computer automatically using the  Consolidate strategy.

How do I transfer shares from one shareholder to another?

To  transfer shares from one shareholder to another navigate to the Entity Information Summary for the entity and follow these steps:

  1. Click Capital on the table of contents on the left of the sceeen under the Entity Information Summary heading. If a table of contents is not showing then you can scroll down the Entity Information Summary until you reach the Capital section.
  2. Locate and view the Shareholders table that has the tabs By Person, By Class and All Transactions.
  3. Click By Class.
  4. Locate the class you want to perform the transaction on.
  5. Click the ••• action menu next to the relevant class name.
  6. Select Transfer.
  7. Complete the relevant details for the Transferor and the Transferee.
  8. Click Save.