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Share Dividend Transaction

Nonto
Nonto
  • Updated

Enhance equity management by efficiently distributing additional shares to existing holders while maintaining accurate capitalization records.

Overview

Athennian supports two types of dividend declarations: Cash Dividends and Share Dividends. A Share Dividend allows an Entity to issue additional shares to Shareholders instead of cash. This process involves verifying share class authorizations, recording the transaction, and generating the necessary legal Documents.

Availability: All Customers

Authorize Share Dividends

Before recording a transaction, ensure the specific Share Class is configured to allow share dividends.

  1. Navigate to the profile of the Entity declaring the dividend

  2. Navigate to the Securities > Classes tab

  3. Select the specific class of shares for which the dividend will be declared

  4. Select the Restrictions tab and click Detailed List to view the specific permissions attached to the shares

  5. Confirm that Allow Share Dividends is checked

  6. If the setting needs correction, select Administrative Edit at the bottom of the screen, check Allow Share Dividends, and select Save

Record a Share Dividend Transaction

Once authorization is confirmed, execute the dividend distribution through the Ownership module.

Perform a Share Cancellation

  1. Navigate to the profile of the Entity for which a cancellation transaction is required

  2. Navigate to the Securities > Ownership section down the left-hand side of the screen

  3. In the Transactions tab, select the blue + New button in the top right-hand corner

  4. In the New transaction modal that appears, select Share Dividend, and the Dividend modal will appear

  5. In the Details section:

    • Fill in the mandatory Transaction Date* and Resolution Date

      • If these dates are not yet available, check off Blank Transaction Date or Blank Resolution Date and fill them in later

      • Note: If Blank Transaction Date is checked off, underlines appear in the generated documents where the dates would have appeared

    • In the Number of shares* field, enter the number of shares 

    • Enter the mandatory Price per share*

  6. In the Holding Selection section:

    •  Click Select Holding to pick the holding to receive the divend

    • A list of the share certificates issued to that holding will appear

    • Check off the certificate(s) from which to cancel the shares

    • A line will appear next to each certificate number - enter the amount of shares to be cancelled from each certificate

      • Note: The numbers entered in the certificates section must match the amount entered in the Number of shares* field

    • Check off Leave balance on certificate if the balance shares (where applicable) should remain on the original certificate

      • Note: If this is not checked and a balance remains on the certificate, the original certificate will be cancelled, and a new certificate will be issued with the balance

  7. Move on to the Preview tab, review the information and click Close once done

  8.  Click the blue Create button to complete the transaction creation

  • The cancellation transaction will appear in the Transactions section in a Pending status

  • Navigate to the status drop-down in the top right-hand corner and select Confirmed to finalize

  • In the Certificates section, the related certificates are visible

  • Proceed to generate Documents to support this transaction as required

Video Instructions