A share certificate can be cancelled through a share transfer, share buyback, share redemption or share conversion. Below we outline how to cancel a share certificate through each of these transactions.
Canceling a share certificate through a share transfer
Step 1: Go to the Shareholders tab and click on Transfer Shares
Step 2: Select who the shares should be transferred to, and the certificate that needs to be cancelled as the “Transferred From” option. Select the date that the shares were transferred, and make sure to select ALL the shares on the certificate for the certificate to be cancelled.
There will be no balance certificate. Make sure that this is the case for the certificate to be cancelled.
Canceling a share certificate through a share buyback
Step 1: Navigate to the Share Classes tab, click on Share Reorganisation under Actions, and select Purchase own Shares / Share Buyback
Step 2: Specify the share class affected by the buyback, the date of the purchase, the shareholder and the certificate that needs to be cancelled. Also make sure to tick the option that selects all the shares on the certificate for the transaction, otherwise the certificate won’t be cancelled.
Step 3: Click Save and an Ordinary Resolution will be created for you by InfoDocs. If you go to the Shareholders tab and under Actions, click on Maintain Share Certificates, you will see that the certificate is not there anymore. Click on the green switch with the white dot in the top right-hand corner of the table:
You can now check for the cancelled certificate in the table:
Canceling a share certificate through a share redemption:
To redeem shares, one should first edit the share class to make it redeemable.
Step 1: Go to the Share Classes tab, find the share class to be redeemed and click on “Edit”
Step 2: In the Type of Share box, select Redeemable and click on Save.
Step 3: From here, under Actions, click on Share Reorganisation and then on Redeem Shares. Click on Next.
Step 4: In the next box, select the Share Class (which should show up as the only redeemable share class option), specify the date of the share redemption and then the Shareholder. Next, select the Shareholding/Certificate to be cancelled, and make sure to tick the “All of them” option to empty and cancel the certificate. Click Save to complete the share redemption.
Step 5: From here you can download and save the generated resolution authorising the share redemption.
You can view the cancelled share certificate if you navigate to the Shareholders tab, click on Maintain Share Certificates, and click on the switch in the top right-hand corner of the table to view all previously active certificates, labelled in grey as “Cancelled”.
Canceling a share certificate through a share conversion:
When shares are converted to a new share class, all certificates pertaining to the old share class will be cancelled and reissued with the new share class.
Step 1: Start by navigating to the Share Classes table, and by clicking on Share Reorganisation under Actions
Step 2: In the next box, select Reclassify / Convert Shares, and click on Next.
Step 3: You can convert a share class into a new share class (prompting you to create a new share class as a next step), or into an existing share class. Once you have created the new share class, the app will take you to the following box:
Step 4: Select the date of the conversion, the share class that the shares will be converted from, and make sure that the “Converted to” box contains the new share class. Click on Save.
From here, you can see the new shareholders of the share class in the Shareholders tab, view their certificates if you click on Maintain Share Certificates, and see the conversions in View Share Transactions.