Recording Share Adjustments

You can record share splits and consolidations on Capdesk.

Adjustments consist of consolidations and subdivisions to the share class and all outstanding securities related to that share class. This includes any share transactions, equity awards and pool authorisations. Ensure your cap table is up to date in Capdesk before publishing a share adjustment. 

• Share Split (Subdivision) 
• Consolidations
• Limitations Around Share Adjustments

Share Splits (Subdivision)

Share splits is when a share is subdivided into two or more shares. What will define this adjustment as a subdivision is the ratio used (1:100, for example, in which 1 share is subdivided into 100). To do so:

1. Navigate to Ownership > Shares > Adjustments.

2. Click Add adjustment. 

3. Input the details of the share adjustment.

• Adjust Pool Authorizations: this will adjust all option security plans with this share class. This is not compulsory.

4. Review the nominal value of the share class before and after as well as the shares before and after the share split in the Details section.

5. Click Save as Draft or Publish. 

Consolidations

Share consolidations is when a two or more shares are merged into less shares. What will define this adjustment as a subdivision is the ratio used (100:1, for example, in which 100 share will be consolidated into 1). To do so:

1. Navigate to Ownership > Shares > Adjustments.

2. Click Add adjustment. 

3. Input the details of the share adjustment.

• Adjust Pool Authorizations: this will adjust all option security plans with this share class. This is not compulsory.

4. Review the nominal value of the share class before and after as well as the shares before and after the share split in the Details section.

5. Click Save as Draft or Publish. 

Please note, Capdesk will round shares up if there are any fractional shares resulting from a consolidation.

Limitations Around Share Adjustments

You can:

• Issue new transactions that precede a share adjustment
• Edit draft grant dates, quantity and amend details
• Delete draft transactions
• Cancel and transfer transactions that precede a share adjustment
• Revoke and publish transactions before a share adjustment
• Edit valuations recorded before a share adjustment
• Edit pool authorisations recorded before a share adjustment

You cannot:

• Delete an adjustment if there are transactions recorded after the date the adjustment has been added;
• Create or modify a transaction when there is an adjustment on a later date affecting the same share class, as this will invalidate the adjustment.