This article will take you through the steps needed to reflect share issuances.
Before issuing shares, ensure you have create the share class and the respective funding round.
SEIS/EIS
If your shares are subject to SEIS & EIS relief and you would like to use this feature on Carta, please enable this beforehand.
1. Navigate to Settings > Settings and add-ons.
2. Expand the EIS/SEIS Add-on dropdown and mark the applicable check boxes.
3. Click Save at the bottom of the page.
Issuing Shares
1. Navigate to Shares > Share transactions.
2. Click Register transaction > Share issuance.
3. In the Choose buyer step, select the shareholder from the list or click Add a new buyer.
4. Add the Transaction details.
- Share class: specify the share class of the shares in this transaction. If the share class was not added prior to the issuance, click Add.
- Funding round: the funding round of which the shares issued is associated with, if relevant. If not added prior to the issuance, click Add.
- Is this share employment related? A security is considered employment-related when a person acquires it due to their employment.
- Date: the legal date of the purchase.
- Registration Date: this is the official date of entry into the shareholder register.
- Quantity: the number of shares in this transaction. The number of shares must be a non-negative integer.
- Currency for the transaction: the currency used to buy the shares. Carta will assume the same currency as the share class. If currency for the issuance differs to this, untick Same currency as the share class and choose the correct currency from the drop down list.
- Price per share: the price paid for one share (you can calculate from the total cost paid by dividing by the share quantity).
5. Add additional, non mandatory information, under the Details, Restrictions and Documents sections, if applicable. The Cost of the transaction is often calculated as the quantity multiplied by the price per share. This field is automatically calculated if left empty.
6. Save draft or Publish and notify shareholder.