An overview on how to record a cancellation for a phantom share grant.
You can cancel phantom share grants in multiple ways, depending on what the cancellation itself means:
1. Register offline cancellation - if you need to register a partial or full cancellation of a grant (eg. the employee has left and you wish to cancel their grant)
2. Cancel execution - you can use this feature only for online issuances to cancel a grant in signing status (eg. the grant has been sent for signing but some details need to be amended)
3. Revoke incorrect registration - you can use this feature only for offline issuances when the transaction has been published but has been registered incorrectly (eg. the grant has been published but you need to correct the details of the grant)
1. Register offline cancellation
To cancel partially or the entire phantom share grant, you will need to go to the Grants page (under Phantom Shares), click on the three-dotted action button (...) relevant to the grant you wish to cancel and select Register Offline Cancellation.
You will then need to select a reason for the cancellation, add the cancellation date and select one of the three options for the cancellation.
- Cancel phantom shares yet to vest - this option will cancel any unvested phantom shares in the grant.
- Cancel all outstanding phantom shares including any vested phantom shares - this option will cancel the entire grant.
- Specify a number of phantom shares to cancel - this option allows you to input the number of phantom shares to be cancelled (could include vested and unvested).
|Please note, that if any unvested phantom shares are to be cancelled, they will automatically return to the pool if issued from the pool.|
You will also be required to add a cancellation note which will be visible to the grantholder e.g. Bob left the company on June 2021. This is optional, you can also add the funding round and any relevant documents.
Once done, you can either Save Draft or Publish Cancellation (if your account is live).
2. Cancel execution
To cancel the execution of a grant, you will need to go to the Online Issuances page (under Phantom Shares), click on the three-dotted action button (...) relevant to the grant you wish to cancel and select Cancel execution.
You will also need to provide a reason for the cancellation, then select Do It.
3. Revoke incorrect registration
To revoke an incorrect registration, you will need to go to the Grants page (under Phantom Shares), click on the three-dotted action button (...) relevant to the grant you wish to revoke and select Revoke Incorrect Registration.
You will then be prompted with a revocation note to input for the grantholder and once done, select Revoke.
If the grant has additional transactions after the issuance, such as an amendment, you will first need to revoke the subsequent transactions. Click on the green button Go to Transactions, then click on the action button relevant to the transaction and select Revoke.
Once done, you should be able to attempt to revoke the grant again.