Allotment of Shares

Allotment of Shares

Share allotment is the process of issuing shares to stakeholders, creating ownership in your company. This guide walks you through the complete process of allotting shares in Fidura, from selecting stakeholders to setting prices and generating certificates.

Before You Begin

Ensure you have the following ready:

• Share class created: You need at least one share class before issuing shares
• Stakeholder added: The recipient must exist in your stakeholders list
• Allotment details: Number of shares, price per share, and allotment date
• Board approval: Ensure proper corporate authorization is in place

How to Issue Shares

See Issue Shares on Fidura for step-by-step instructions.

Technical Details

When a share is allotted, we record the following:

1. Stakeholder
2. Trustee? (if applicable)
3. Share Class
4. Allotment Date
5. Number of Shares
6. Price per Share
7. Capital Contribution
8. Certificate ID
9. Board Approval Date

We increase Share Capital by the following:

1. Issued Share Capital = Share class nominal price × number of issued shares
2. Share Premium = (Issue Price - Nominal Price) × number of issued shares

Whenever an allotment of shares occurs, a new Share Certificate is created.

Reverting Allotments

If you need to undo a share allotment that was created in error, you can revert it. Reverting an allotment removes the share certificate and reverses all capital changes associated with that issuance.

When to Revert an Allotment

Revert an allotment when:

• The allotment was created with incorrect information (wrong stakeholder, wrong number of shares, wrong price)
• The allotment was created by mistake
• You need to correct the capital structure and start over

How to Revert an Allotment

1. Navigate to the Transaction

   • Go to the company's Transactions page
   • Find the allotment transaction you want to revert
   • Click on the transaction to open its details

2. Open the Revert Dialog

   • In the transaction details page, click the Revert Transaction button
   • A confirmation dialog will appear

3. Confirm the Reversion

   • Review the warning message carefully
   • The dialog will confirm that reverting will undo the issuance and cannot be undone
   • Click Revert Transaction to confirm

4. Verify the Reversion

   • After reverting, you'll be redirected to the transactions page
   • The share certificate will be removed from the system
   • Share capital and share premium will be adjusted automatically
   • The cap table will update to reflect the removal

What Happens When You Revert

When you revert an allotment:

• Share Certificate Deleted: The certificate created during the allotment is permanently removed
• Capital Reversed: Issued share capital and share premium are reduced by the amounts that were added during the original allotment
• Stakeholder Updated: The stakeholder's shareholding is reduced, and their ownership percentage is recalculated
• Registers Updated: The register of members and register of allotments are automatically updated
• Cap Table Updated: The cap table reflects the removal of these shares

Important Considerations

• Subsequent Transactions: If shares from this allotment have been transferred, you must revert those transfers first before you can revert the allotment
• Capital Actions: If any capital actions depend on this allotment, you may need to address those first
• Audit Trail: The reversion is recorded in the audit trail, but the original transaction is removed from active records
• Documents: Any documents associated with the transaction will remain, but the transaction itself will be reverted

Alternative: Correcting Instead of Reverting

If you only need to correct minor details (like dates or prices), consider editing the transaction details instead of reverting the entire allotment. Reverting should only be used when you need to completely remove the allotment from the system.