Before you can record a grant, you will need to:
- Enable the relevant equity add-on - Once enabled, you should find it under 'Equity Awards' and click on the equity page that you would like to record a grant for.
- Create an incentive pool / add an authorisation
- Add an equity plan -This is the plan the equity will be issued from.
On Capdesk, you can issue share grants for your stakeholders in two ways:
- Offline share grant issuance - an offline issuance can be used when the signing process has taken place or will be signed outside Capdesk
- Online share grant issuance - an online issuance can be used when you want to get the agreement issued and signed via Capdesk. a) How to sign the share grant agreement b) Access and download signed agreement
1. Offline share grant issuance
Go to Share Grants (left-side menu) then 'Grants' tab and click the 'Issue grant' button, then 'Register Offline Issuance'.
You will then either choose a stakeholder from the pre-existing list (those that are already registered on Capdesk) or select 'Add New Shareholder Instead'. If the latter choice, you will need to enter details of the shareholder (name, email, etc).
After you've chosen or created a stakeholder, you will then need to enter the details of the share grant. Some details are dependent on the equity type.
The details can include:
- Share plan: Select the share plan you previously created.
- Grant date: Date of the grant agreement. Not to be confused with the vesting start date.
- Shares: Number of shares to grant.
- Registration date: This is the official date of entry into the shareholder register.
- Hurdle price: The hurdle price per share which has to be reached for the share grant to gain value.
- Employment related?: A security is employment related, when it is deemed that a person acquires it by reason of employment. you can tick this box if this applies. It is essential to tick this box if you need to report the grant to HMRC in the other ERS annual return.
- Vesting Schedule
Once you've entered the relevant details, select either the 'Save Draft' or 'Publish and Notify' (if applicable) button.
If the option grant is still in 'Draft' you can edit the grant by clicking on the action button (...) to the right-hand side of the award and then 'Edit'.
If you want to publish share grants that are in a Draft state, you will need to click on Share grants - Grants - click on the action button (...) - Publish and notify.
Once the share grant has been registered it will appear on the 'Grants' tab as shown below.
For detailed information about the equity grant click on 'View' by the relevant award.
2. Online share grant issuance
Before you can start executing share grants for signing, you will need to:
a) Add the share grant agreement template on Capdesk. Please note your account will also need to be live to issue and sign agreements on Capdesk.
b) Select the default signatory (the person who will sign documents on behalf of the company)
|Using any of online signing features (share certificates, option grant signing, etc) on Capdesk will, by default, use our DocuSign account and this will cost you £2.50 per document to cover the cost of signing. However, we allow you to log in to your own DocuSign account so there is no additional cost for you.|
Once you have added the share grant agreement template and selected the signatory, navigate to the left-hand-side menu and select 'Online Issuances' tab on the 'Share grants' page. Then click on the green 'Issue Grant Online' button.
This will prompt you to select the stakeholder to whom you wish to issue the grant. Select a stakeholder from the recommendations list shown, or start typing a name in the search bar to find the person you're looking for. If the person you're issuing the grant is not already a stakeholder in your company, click the 'Or Add New Shareholder Instead' button to create the shareholders' profile.
Once you've selected your shareholder, you'll need to fill out some details on the grant, as shown below.
- The 'Document Set' field will only appear once you have selected the share grant plan. You will then need to select the relevant document set you have created for that plan.
- The 'Expected Grant Date' field asks you for the date you expect the grant agreement to be signed by all parties. However, if signing is not completed by this date Capdesk will automatically adjust both the agreement and user interface to the date all parties (company and shareholder) have signed the agreement.
When you have added all the necessary information, click 'Save Draft' if you want to review and send at a later date or 'Send for Signing'.
|Please note if your share grant plan pulls shares from an incentive pool, that pool must have enough available shares to cover the shares to be granted.|
Now you have to wait for the grant recipient and their witness, (which the grant holder will provide themselves) to sign the grant agreement before you and your own witness can do so too.
You will then be able to see the stage at which your grant is at the moment under 'Status'. You can also filter this section to check any completed, cancelled or in signing share grants.
|Please note, there is a time limit imposed by DocuSign of 120 days to complete the signing from the day the grant has been issued. If you wish to amend the time limit, please refer to this support guide.|
a) How to sign the share grant agreement
This is also where you will be able to see when it's time for you and your witness to sign the document, so when in the signing process, make sure to check this tab regularly. When the status will turn to 'In Progress Issuer Signing (Awaiting Signature(s))' the designated signatory on behalf of the company will need to sign the document.
Click on the action button '...' on the far right of your name section and select 'Review and Sign'
You'll then be asked to select a witness if required.
Selecting add new witness will bring you to the page below where you can enter the personal information of the person you wish to be your witness.
Your witness will receive an email inviting them to log in to Capdesk and sign the option agreement.
When both parties are ready to sign, you will be shown the grant agreement.
You must read the agreement to ensure all details are correct. Then click 'Start' on the left-hand side.
This will take you to the relevant page of the document, where you'll be required to add an electronic signature indicated by the yellow and black icon shown below:
To sign, click on the icon. This will automatically sign the agreement.
To finalise the signing, select the 'Finish' button at the top of your screen.
Now that all parties have signed, the grant issuance is complete and issued. If you navigate back to your 'Online Issuances' tab, you should be able to see that the 'Status' section of your grant has changed to 'Completed'.
b) Access and download signed agreement
Finally, if you wish to download the signed option agreement, navigate to 'Share Grants' on the left-hand side menu, and locate the name of the grant holder under 'Online Issuances'. Click on the 'View' button next to their name, on the right-hand side a tab called 'Option Grant' will open, scroll down to the bottom and you'll find it under 'Grant Documents'.