Here is the step by step process on how to terminate a stakeholder on Eqvista.
Step 1: Log into your Eqvista account and select the desired company profile.
Before we can move ahead, it is important for you to understand that you cannot terminate a stakeholder without claiming back all the shares that they own or until they transfer the shares to someone else. So, before we can move ahead and terminate a stakeholder, we need to transfer the shares they hold or delete the grant they were offered.
For this, click on “Securities” on the left-hand panel of the dashboard. A drop down menu will appear. From the menu, click on “Equity Share Class” as shown below.
Step 2: You will be directed to the following page. This page will show you all the equity classes that are there in the company. Select the equity class that the stakeholder you want to terminate owns shares from. In this case, we are selecting “Class A”.
If you are not sure about the class from which the stakeholder owns the shares from, you can check it from the stakeholder’s profile. For this, click on stakeholder and then on the name of the stakeholder, to see their complete details including the name of the equity class from which they own the shares.
But as we are not terminating any of the founders, and there is only one other equity class, that is, Class A. So, click on “Class A” here.
Now as mentioned above, there are two things that you can do – delete the grant or transfer the shares. We would take both the examples for two different stakeholders and show how it is done below.
Situation 1 – Deleting a Grant
Step 3: After clicking on “Class A”, you will be directed to the next page where you can easily see those who have been issued shares from this class. Click on the certificate number of the stakeholder that you want to terminate.
In this case, select “CI-111”.
Step 4: After clicking on the certificate number, you would be directed to the page of the certificate that shows the shares have been issued to the respective stakeholder. In this case, Jake Santiago is issued shares from Class A and the certificate name is CI-111. You can see the details as shared below.
Here, click on the “Actions” button on the upper right hand side of the page. A drop down menu will appear. Click on “Delete Grant” from it. You can also choose to transfer the shares to someone else, in case someone else is getting the shares. Just ensure that all the shares that the stakeholder has is given to someone else or claimed back.
Step 5: By clicking on this, a dialogue box will appear asking to confirm if you want to delete the stakeholder or not as shared below.
Select “Delete”, and the grant would be deleted. And then you would get to the following page.
In the above, you can see that the certificate “CI-111” has been removed. This means that the stakeholder “Jake Santiago” can now be terminated. The termination process would be discussed in step 6.
Situation 2 – Transferring the Shares
But before we move ahead, let us imagine that the stakeholder wants to transfer the shares to another stakeholder. Taking this situation, let us take another stakeholder “Taylor Stark” who would also be terminated from the company.
Step 3: In this case, you would have to click on the certificate number, which in this case is “CE-222” as shown below.
Step 4: By clicking on this, you would be directed to the page that shares all the details of the grant as shown below.
Here, click on the button that says “Action” as you did before, and this time, from the drop down menu, select the option “Transfer Stock”. Once you do this, you would get a pop-up window as shown below.
Select the stakeholder’s name to whom you are about to transfer the shares to. In this case, we selected Alarc Saltzman.
Step 5: Then, fill in the other details as shown below.
Remember to choose full transfer if you want to transfer all the shares to just one other stakeholder. And if you want to transfer the number of shares to multiple different stakeholders, you would need to select the option of “Partial Transfer” and re-do the steps till all the shares have been transferred. In this case, we selected full transfer and clicked on “Save”.
With this, you would be directed back to the equity class page as shown below with the new certificate number for the transfer made.
With this, the stakeholder named “Taylor Stark” doesn’t have any shares now and can be terminated as shown in the next step.
Step 6: Once you are done with this, you can move onto the next step. Get back on the main dashboard and select “stakeholders” on the left-side panel of the dashboard as shown below.
Step 7: Once you have selected the option “stakeholders” on your dashboard, you would be directed to the following page.
On this page, you will be able to see the list of all the stakeholders of the company. Assuming that you want to terminate one/two, you would have to select the name of that stakeholder that you want to terminate from the company.
In this case, we selected “Taylor Stark”.
Step 8: As soon as you select the name of the stakeholder, you will be directed to the main page that shows all the details of this particular stakeholder as shown below.
On this page, there is an option on the upper right hand side that says “Delete” beside the option “Edit Information”. The “Delete” option allows you to delete the stakeholder from the company. So, click on “Delete”.
Step 9: By clicking on “Delete”, a dialogue box will appear as shown below.
In this dialogue box, you would be asked if you want to delete the stakeholder or no. And since you want to terminate the stakeholder, select “Delete”.
Once you do this, the stakeholder would be terminated from the company profile. You can also terminate the second or other stakeholders in this way.
If you want to know more or understand any other process, check out the other support articles here or contact us!