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 from the day the company was imported to Connectworks.

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 duplicate 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 within the company workspace (as well as with the Clients>Contacts tab). This will only occur for Companies loaded prior to 2018, or when contacts have been deleted from the master contacts list without merging.

 

Start with a clean slate, or convert Balance Checks

Next, you will need to go into the Shareholders tab of the chosen company and decide if you would like to keep or delete the imported shareholder history. Imported share records will appear as Balance check's in the Transactions tab. This does not constitute a compliant share register 

If there have been substantial changes to the share register in the past 10years Connectworks recommends deleting the balance checks and rebuilding a compliant share register starting from the 10year record and building back up to the present day. If the changes have been minor, or have happened after the date of import, you may simply convert the balance checks to issued shares to use as a starting point.

To keep the imported details: 
In the Share register>Transactions tab select the "balance check/s" showing and then "Convert to Issue" with the Cogs menu. Doing this will turn the balance checks into editable transactions.

To delete the imported details: 
Navigate to the companies Shareholders tab>Share Register>Transactions  and place a tick next to all the transactions, click on the cogs and select remove transaction.

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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 menu and select remove.
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Set 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.

NB. You can also use this "existing contact" search to add other Company or Trust profiles as shareholders (if these are also loaded in Connectworks as clients or contacts of your firm). This is recommended, especially if you are using our advanced signing functionality for distributing shareholder resolutions and other documents. 

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Repeat this process to issue shares to all shareholders of the company when it was first incorporated (or from the necessary 10year threshold). If the same person has two separate classes of shares, repeat the process to allocate shares 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 (shares held by trusts or other entities)

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 Shareholders>Share Register>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>Share Register >Allocations.

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

Share Transactions

Share Register Management (Video)