Once you have created a Share or Unit Class, you can begin to issue shares.
Issue shares to a shareholder.
To issue shares or units, you’ll start by navigating to the desired Entity Record from the main page.
Once inside the Entity Record, you’ll need to navigate to the Transactions tab where you will see the Share Class that you created.
If you have created multiple Share Classes, you will be able to see multiple options within this window. But if you only have one confirmed Share Class available, it will be your only option.
To create a new transaction, you’ll need to navigate to the + New button. A window will all of the different transaction types available to you will pop up.
To issue shares you’ll choose the Issuance option.
The Issuance workflow will pop up. On the left-hand side you’ll see your main navigation options—Details, Shareholding, Certificate Issuance and Review.
Within the Details tab, you’ll be required to required to enter the following information:
- Transaction Date
- Resolution Date
- Number of Shares
- Price Per Share
While your Transaction Date and Resolution Date are often the same date, if they aren’t in your case you have the opportunity to change them. You can leave transaction dates empty or mark them as blank dated and then update them later once you have the closing dates available to enter.
There is a space called Other Consideration for you to include notes for other types of consideration that were given in exchange for shares—such as property or services. Finally, in the Use on Register box, you can leave a note to be used on the register or ledger describing the transaction.
Once you’ve entered the information, you can go ahead and select who you want to issue it from in the Shareholding tab.
Once you’ve navigated into the Shareholding tab, you’ll see two options: Create new shareholding and Select from an existing shareholder.
If you are dealing with a brand new company there will bee no existing shareholders, so you will be forced to Create new shareholding. When you create a new shareholding, you can either issue shares to a Person or an Entity.
You can find the new shareholder by selecting Person or Entity from the right-hand drop down and choosing + Shareholder.
Once you have chosen the shareholder, you’ll want to fill out the following information:
- Tax Residency
- Share Address
If you want to add multiple parties to an ownership interest, you can do so adding another shareholder and describing the interest. You can also add a customized shareholding name to describe any interest configuration you want (e.x., ABC Inc. in trust for Catherine Smith).
Once you have completed the information in the Shareholding tab, you’ll next move on to the Certificate Issuance tab.
Once you’re in the Certificate Issuance tab you’ll see what the stock certificate is going to look like. The certificate coding pattern comes from the one that you entered when creating a share class. Anywhere you have left an asterisks, Athennian will replace it with a number, and as you issue more and more shares, it will suggest the latest number.
You can click Uncertificated Shares which you can use for document automation, to contain notices of Uncertificated Shares. And, if you had added a legend details in the Share Class, then it would be seen in the bottom Legend box in this window, and you can use that to print on the Stock Certificate as well.
Once you have the basics of your Certificate Issuance sorted out, you can go to review and simply do a quick check that all of the information is correct. Once you’re satisfied, hit the Draft button in the bottom right-hand corner.
If you have not yet imported any templates, you might be prompted with a Supporting documents window. Simply check the applicable documents and hit Merge.
Once you’re back at the main Transaction tab window, you’ll see that your new Share Issuance will be there under Pending.
To confirm this transaction, select the Pending Transaction. A small pop-up will appear and you simply need to hot Confirm in the bottom right-hand.
The transaction will then turn to Confirmed.
From the Transaction window, if you go to Certificates you’ll find the new certificate that is leading back to this new transaction registered in the name of the shareholder that you assigned it to.
If you head to the Shareholdings tab you’ll see a new shareholding record.
Finally, if you go back to your Overview tab in your Entity Record, you’ll now see this new information reflected under the Shareholdings heading. Underneath the Confirmed Share Classes, you’ll see the Shareholdings heading with the specific shares assigned to your shareholder.
Issue shares to entities
If you want to issue shares to an Entity instead of a Person it’s the exact same workflow, the only difference is you’ll want to select Entity instead of Person when you’re working through the Issuance workflow > Shareholding instead of Person.
That will prompt the Select entity box where you can find the Entity that you want to issue the shares to. Otherwise the process is the same.