This article explains the dynamics of stock certificates in Athennian and how you can manually manage them.
Certificates record transactions and are evidence of ownership of a certain amount of shares. Certificates have an Issued and a Cancelled status. Transactions are automatically associated to certificates, but transactions can also be manually associated with certificates if you are manually entering in data or rebuilding corporate history in Athennian.
You can access certificates by navigating the Securities tab of an entity, selecting the Shares tab and then going to Certificates. This view will show you all the certificates in a particular class of shares. You can change the class through the class selector in the top of the view.
You can sort certificates by clicking on any of the column titles on the certificate table. For example, if you click on Issue Date, the list of certificates will ordered chronologically based on the issue date.
Viewing and Editing Certificate Cards
Clicking on a certificate record will open the certificate's card. You can find all the information about the certificate here.
Total vs. Net Shares
Because you can store issued shares on cancelled certificates, there are fields for both Net Shares and Total Shares. Total Shares represents the total number of shares that were recorded on the certificate originally. The Net Shares represents the amount of shares that are still currently recorded on a certificate.
As a matter of legal accuracy, shares should not be recorded on cancelled certificates. However, to assist with share certificate management, you can store shares on cancelled certificates as a security balance to enable you to transact with those shares in another transaction without having to create temporary certificates to hold a balance remaining. This can be done by checking off the Leave balance on certificate box in a transfer workflow as shown below.
For example, if Tom has 500 shares on certificate A-1 and wants to transfer 250 to Sam and 250 to Steve. You would create two transfer transactions, one to Sam and one to Steve. The first transfer would cancel A-1 with a balance remaining of 250 shares. You would then select A-1 to transfer the balance of 250 shares to Steve.
Athennian will publish a warning if you have shares recorded to cancelled certificates to help you ensure that all your shares are recored to Issued certificates.
Manually Cancelling an Issued Certificate
To manually cancel an issued certificate, click into the certificate and navigate to the Cancel tab. Once you have entered a Cancel Date and Reason for Cancellation, click the Cancel button to cancel the certificate.
Manually Issuing a Certificate
You can only manually issue a certificate from the Certificates tab if you're doing it as a result of a Change to Certificates or as a result of a Change to Shareholdings. If you're issuing a certificate for any other reason, you would follow the steps in the Transactions tab. For the generation of certificates resulting from a Change to Certificates or a Change to Shareholdings, go into the Certificates tab and click + New. Select whether you're issuing the certificate as a result of a Change to Certificates or as a result of a Change to Shareholdings.
Fill in the information in the Details tab, navigate to the Certificate Issuance tab to select the applicable shareholder, and then navigate to the Review tab to review the information and then click Confirm.
Generating a Certificate
To generate a certificate, we need to configure the Word document template we want to use as the Certificate Template. Navigate to General and then the Compliance sub-menu to find the certificate configuration selector. Click it to select an available template.
Navigate back to the Transactions > Certificates area, then hover over a certificate record to reveal the Generate button. Click Generate and a stock certificate will be saved to the Documents tab.
You can generate certificates in bulk through transaction document generation workflows. Ask your administrator how to configure this.