Basic Shareholding

Overview

This article will guide you through the basics of share registers in Connectworks.

It's important to know that when you Import a Company into Connectworks, the Shareholding Overview which appears in the Shareholders Tab of a Company Workspace is a "snapshot" of the shareholdings recorded at the Companies Office on the day the company was imported.

According to Companies Office requirements, you must keep a record of the last 10 years of shareholding information for a company. Therefore to create a compliant share register in Connectworks you must manually update the historic share records.

Contents

1. Merging

2. Start with a clean slate

3. Share classes and voting rights

4. Allocations

5. Updating share allocations

  

 

Merging 

The first step to ensuring you have a compliant share register is to merge all the contacts to prevent confusion in the future.

NB. If you are still seeing duplicates when adding allocations, ensure that the profiles are also merged in the admin tab (along with the Contacts tab) within the company, as pictured below. This will only occur for Companies loaded prior to 2018, or when contacts have been deleted from the master contacts list without merging.

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Start with a clean slate

Next, you will need to go into the Shareholders tab of the chosen company and decide if you would like to keep or delete all the shareholder history.

This is because the "snapshot" of shareholdings from the Companies Office import may be out of date. Most firms also find it easier to build a compliant share register from scratch than attempt to reconcile it with the existing record.

To keep the details you can select the "balance check/s" showing in the transactions tab and then "Convert to Issue" with the Cogs menu. Doing this will turn the balance checks into editable transactions, but it's likely you'll want to delete the entire record. 

To delete the imported "snapshot" of shareholdings:

1. Navigate to the companies Shareholders tab -> Share Register -> Transactions -> place a tick next to all the transactions -> click on the cogs -> remove transaction

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2. Then also navigate to Allocations in the top menu (ensure the filters on the lefthand side are set to un-filtered)-> place a tick next to all the allocations -> click on the cogs -> remove
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Share classes and voting rights

By default, there will only be an Ordinary shares in the Share classes page of the shareholders tab when the company is imported from Companies Office.

To add a share class, click I would like to… and select create a new class of shares:

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Name the share class and select voting rights:

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Allocations

Once the share classes are added, you need to add the people.

To record the new share allocation

1. Navigate to the companies Shareholding tab, select "I would like to..." and click "Issue shares to new allocation".

2. To add a person to the new allocation search for their name under existing contact, select the class of shares being issued, record the number of shares being transferred, the share price (if applicable) and the transaction date, then hit Create.

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Repeat this process to issue shares to all shareholders of the company when it was first incorporated. If the same person has two separate class shares, you can repeat the process again to allocate shares to them from the other share class.

You can check you have allocated the shares correctly by going to the Allocations tab and clicking on the person you just added. A slide-out panel appears displaying the share transaction you have just created. e.g. Simon Jones - 50 A class shares. 

 

Updating share allocations

It is possible to give a share parcel a name to help distinguish where shareholding is held by a trust or entity with ownership powers distinct from those of the individuals who compose it. It is also possible to update the names of the parties recorded against an existing allocation. 

Update the name of a share allocation:

Click on ShareholdersShare Register and select Allocations.
Place a tick next to the share parcel, click on the cogs and select edit.

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This allows you to enter an optional name for the parcel, you can enter the name of the trust here. When complete click Update.

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Update parties in an existing allocation:

1. Click on the Shareholders tab, then in the share Share Register select Allocations.

2. Select the tick box of the allocation that requires amending, then select "change" next to the header Parties to the allocation in the slide-out panel which appears on the right.update_allocation.png

3. In the subsequent form add the new party to the allocation (and remove any parties and add retirement date if required) then select the Update button in the top right to save the changes.

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