InfoDocs offers four share re-organisation transactions that are easily completed on the app: Changing Authorised Shares, Re-classifying or Converting Shares, Redeeming Shares, and Share buy-backs. All of these can be found in the Share Classes tab, under Actions, and by clicking on Share Reorganisations. Below is an outline of each of the four transactions and how you can easily record them in InfoDocs.
- Changing Authorised Shares
After clicking on the Share Reorganisation button in the Share Classes tab, a box will pop up with five options. Select Change Authorised Shares and click on Next.
Select the Share Class which you would like to be affected by the change, the date the re-organisation took place, decrease or increase the authorised shares to the desired amount, and click on Save.
InfoDocs will automatically create a Ordinary Resolution outlining the change.
2. Reclassify / Convert Shares
In the Share Reorganisation pop up box, select Reclassify / Convert Shares and click Next.
The next box will give you two options: To either convert a current share class into a new share class, or to convert a share class into an existing share class.
Select the option that applies and follow the steps.
To convert a share class into a new share class, a box will appear that will prompt you to fill in the details of the new share class (name, the date when they were created, type, description and whether they are Par Value or Non Par Value shares). Next, another box will appear, asking you to specify the conversion date and the share class which the old shares were converted from. Fill in the correct details, and click on Save.
To convert a share class into an existing share class, click on the aforementioned option, fill in the date the shares are converted, which share class they are being converted from, and which share class they will be converted to, and click Save.
**Just a Note: Old share certificates will be deleted/cancelled upon conversion and new ones will be created. These transactions you can see as they happened in the Share Transactions tab, and the certificates will be available in the Shareholders tab under Maintain Share Certificates.
3. Redeem Shares
In order to redeem shares, you will need to edit a share class first, and change it to redeemable.
Go to the Share Classes tab, find the share class you would like to edit and click on Edit.
A box will appear. Make sure the name of the Share Class is correct, and change the Type of Share to Redeemable. Click on Save.
Next, click on Share Reorganisation under Actions. In the pop up box, select Redeem Shares.
A box will appear wherein you can add the details of the transaction. Select the Share Class being redeemed, the date of the transaction, the Shareholder and their corresponding Share Certificate, the number of shares, and click on Save.
InfoDocs will create an Ordinary Resolution detailing the Share Redemption transaction. It will also be visible in your Share Transactions tab.
You will have to repeat this process for all shareholders of this share class until all shares have been redeemed.
4. Share Buyback
In the Share Reorganisation pop up box, select Purchase Own Shares / Share Buyback and click Next.
In the next box, fill in the details pertaining to the transaction: The Share Class, the date of the buyback, the shareholder the company is buying from, the number of shares (usually all of them as the certificate will be cancelled), and the amount paid per share. Then click Save.
InfoDocs will create an Ordinary Resolution for you outlining the details of the buyback.
And that’s it! We have written separate How-To articles for each of the above transactions if your ever need a reminder of how to do them. Simply search for the keyword in the search box. If you have any trouble, please feel free to contact email@example.com and one of our friendly staff will be happy to assist you.