One of the features of the Eqvista app is Electronic Shareholder Acceptance. When you issue equity grants, options, and warrants to shareholders, there will be an electronic acceptance for shareholders to sign (electronically) for the issuance to take place.
Note: You will need to add the shareholder profile before you can begin the issuance process as shared below. To learn how to add a shareholder, check out our support article here!
Also, note here that you only need to share the shareholder access here so that they can see only the shareholder part and nothing else. The shareholder sees just their equity transactions. They will not have access to the full cap table. To know how to share access to shareholders check our support article here.
Once you are done with sharing access of the cap table to the shareholder, you can follow the steps shared below for issuing shares to a shareholder:
Step 1: Log into your account and from the dashboard, click on “Securities”, then “Equities” (or whichever kind of security you are about to issue), and from this page, select the equity class. You will then reach the page as shown below:
From here, you will see all the equity classes listed. Select the equity class from which you want to issue shares to the shareholder. In this case, we selected the “Founders” equity class.
Step 2: Once you do this, a new panel will appear on the page.
From here, click on the “Issue Grants” button that is on the top right-hand side of the page.
Step 3: You will be directed to the next page where you again need to select the equity class from where you want to issue the shares as shown below.
Select the equity class from the list and another option will appear below it saying, “Add new Grant”, click on this.
Step 4: When you do this, you will be redirected to the next page where you can begin the process of issuing the shares to the shareholder. Search for the shareholder you want to issue the shares to, type in the name, and you will get the option on the right-side panel.
Besides the name that appears, you will see a button that says “Select”, Click on that.
Note: You can also add a new shareholder by selecting the option above it. Once done, just add in the details of the new shareholder and move on to the next step to begin the issuance process.
Step 5: You will be redirected to the next step and process. Add the share details and select “YES” on “Required Shareholder Acceptance” as below:
You will also have the option to attach a document or just a signature of the shareholder for their acceptance. In this case, we selected the option to just get the signature. Once done, click on “Submit”.
NOTE: The next steps are to be taken by the shareholder of the company. The above steps were to be taken by the superuser on Eqvista (who controls the cap table and all the transactions).
Step 6: By doing this, the shareholder will receive an email regarding the new grant issued and will be required to approve this. The email would be as shown below:
Being the shareholder that receives the request, you will have to click on the button “Go to Eqvista”. With this, you will have to create an account and you will be redirected to the grant page.
Step 7: Until the shareholder accepts the grant, the status would be shown as pending as shown below:
Step 8: To accept, the shareholder who received the request will have to select the grant after logging into their account. By doing this, this person will be redirected to a new window. Here, the shareholder will have to add their signature to accept the grant as shown below.
Note: The shareholder should have already been invited to see their part of the shares in the company on Eqvista. Once the shareholder is invited, they need to create their new password and then login into the account. From there, they will be able to see the grant.
To add the signature, the shareholder needs to add their user name in the field available as shared above (If you add different name you can’t approve the grant). And once done, the shareholder has to select the “Approve this grant” button. By doing this, the grant will be approved and you can view the grant details as shown below.
And just like this, you can easily issue shares online securely by adding shareholder approvals for your grants on Eqvista.