Streamline share structures and maintain accurate capitalization tables by automating the consolidation process in just a few clicks.
Overview
A share consolidation (also known as a reverse stock split) reduces the number of issued shares in a specific class while increasing the value of each individual share. This process ensures the Entity's equity structure remains clean and compliant with corporate resolutions.
Availability: All customers.
Navigate to the Share Class
Access the Entities module and select the desired Entity
Navigate to the Securities section and select the Classes tab for the modal to appear
Click directly on the specific class requiring consolidation
Note:
There must be at least 1 Transaction/ Certificate in Securities
The Capital Type for the class must be Shares/Units/Stock for the Consolidation workflow not to be greyed out
The Transaction Date* cannot be any day in the past, including the present day
Initiate the Consolidation Workflow
Click the blue Alter Class button located in the bottom right-hand corner of the screen
Select Consolidate Shares from the list of available options in the Alteration modal
Configure Consolidation Details
Once the Consolidate Shares modal appears, the Select Type will already be pre-populated to Consolidation, as well as the mandatory Transaction Date*
Enter the desired ratio in the Consolidation Ratio fields
Select Cancel and Re-issue to replace existing Certificates
Check Round Newly Issued Certificates if fractional shares that require rounding
Select Apply Alteration to the Authorized Amount to adjust the total Authorized Capital of the class
Click the blue Save button in the bottom right-hand corner to finalize the transaction
Review Resulting Transactions
Confirm that all outstanding Certificates are marked as Cancelled (if previously selected)
Verify the new Certificates appear under the Securities section
Review the automatically generated transaction record in the Ledgers
Things to Consider
In a Consolidation, the number of shares decreases while the price per share rises; for example, in a 1-for-2 consolidation, your 100 shares at $10 would become 50 shares at $20.
In a Split, the number of shares increases while the price per share drops; for example, in a 2-for-1 split, you would own 200 shares at $5 instead of 100 shares at $10. More details in our Share/Stock/Unit Split article.