Depicted below is the formation screen of share capital. The shareholders tab is selected.
This is where you would set up the share capital class in terms of the MOI. There can be an unlimited number of share classes.
This is where you put in the initial shares of the company when a company is just formed i.e. the initial subscribers of the shares. Where there is a requirement to allot additional shares or do any kind of transfer or share transaction this must be done under transactions.
Please note you should only enter the initial subscribers to the shares in this area.
There are various boxes in regard to shares and it would be necessary when starting out to put the share class in by clicking on the new icon and there is space to put in a share class code. Make the share class code unique for all types of shares for a particular company. Eg ORDPV or ORDNPV. You can indicate whether they are par and if so the nominal value of the shares, if they are not par you do not have to indicate anything. It would be a requirement for you to enter the qualifying number of shares, this is the number of shares that a director must hold in terms of the MOI if applicable. The authorised number as per the MOI should be entered here. There is a box where you can enter the subscriber details, the balance quantity, premium balance and the Capital Reserves. On the right hand side there is certificate pre-fix and decimals that you can enter, the dividends taken and accumulated dividends for this particular share class.
A company may have an unlimited number of share classes and each time you want to create a new share class click on the new button.
The principal of using this screen is that on the bottom part of the screen you do the allotments, making sure that the top part shows the correct information in regard to issue and the number of shares that are available. These should always reconcile.
Where you establish a new class of no par value shares build NPV into the share class code so that NPV shares are easy to identify.
If you click on theCapitalButton there is an ability to adjust the share class balances so that they reconcile with schedules produced.
If more detail is required against an allotment click on the 3 dots above.
