A simple and straight forward way to transfer ownership from one stakeholder to another.
There are instances in which companies need to reflect share sales, transmission of shares by operation of law, gifts and donations. For these instances, Carta offers company administrators a simple and easy way of transferring ownership from one individual to another.
1. Navigate to Shares > Share transactions.
2. Click Register transaction > Share transfer
3. Click on the name of an individual to select the seller (transferor) from the list of shareholders you currently have in your cap table.
4. Click on the name of an stakeholder to select the buyer (transferee) from a list of stakeholders of your company or click Add new buyer in case the transferee is not yet in your cap table.
5. Input the details of the transfer. Some fields are mandatory:
- Share class - the share class of the shares that are being transferred
- Is this share employment related - Mark yes if the share transfer is related to an employment transaction.
- Date (UTC) - the date of when the transfer took place
- Quantity - the number of shares that are transferred
- Currency for this transaction - Select another currency if the currency is different from the currency of the share class.
- Price per share - this is the price paid per share (making sure the correct currency for the transaction is selected).
Besides the mandatory fields, you can also fill out with information for these fields:
- Funding round - if you want to record this transaction to a specific funding round
- Registration date - the date of when the transaction was entered in the share register/register of members
- Notes and Comments - under the 'Details' tab, any notes and comments can be recorded for administrators, the buyer and the seller to view.
- Add documents - Click on the collapsible menu Documents. You can upload any relevant documents relating to the transaction (i.e. proof of purchase).
6. Click Publish and notify shareholder if you would like to publish the transaction on your cap table or Save draft if you want to save the information and review it later.