SeedLegals automatically creates a share certificate for each shareholder in your cap table.
- In the case of investors in your latest funding round, as soon as you close your round (by hitting the ISSUE SHARE CERTIFICATES button at the end of the funding round) they'll automatically turn into shareholders and get added to the cap table, ready for you to issue their share certs to them.
Here's how to issue share certificates:
- Select Shares in the left menu.
- Click the Certificates tab.
- You'll see a share certificate for every investment, ready to date and sign.
Check the dates
- Share certificate should always be dated the same date or anytime after that investment was received (money first, shares later, always).
- If you're dating the share certificates for multiple investments in a funding round, you'll typically batch together all the SEIS investments and date all them as the date that the last SEIS monies were received.
And you'll then batch and date all the non-SEIS and EIS investments as the date that the last of those monies were received.
The reason is that when you need to do your SEIS/EIS Compliance, HMRC need one SEIS1/EIS1 form for every date that shares were issued on, so it's much more efficient to group all SEIS monies in a given round on one date, and ditto with all EIS monies. In both cases that should be the date that the last of those monies was received in that round.
- If you need to change the date of any share certificate just click the Pencil icon next to the date and set a new date.
Sign the share certificates
If the Company has two or more Directors...
Then the share certificates need to be signed by two Directors. So get each Director to go to the share certificate page (Shares > Certificates tab) and click the SIGN ALL button, which signs all share certificates in one click.
If you don't want to sign all, you can sign multiple share certificates in one click - just select one or more and go Actions > Sign Selected.
If the Company has one Director...
Then you'll need to get a Director and a Witness to sign the share certificates.
- If a user who has just Admin and Signatory roles (in the Users & Roles page) signs the share certificates then their signature will show as a Witness.
- Or, if they also have the Director role then their signature will appear as a Director.
So first get your Director to head to the share certificate page and click the SIGN ALL button. Then to add your Witness:
- Head to Settings > Users & Roles and click on the New User button. Add the email and name for the witness, and give them both Admin and Signatory roles. Don't forget to also add their address and job role (that will appear on the share certificate as their Witness Occupation).
- Invite the Witness to sign up to the platform.
- They will have to login and then direct them to the share certificates page (Shares > Certificates tab). Once there they can click the SIGN ALL button.
- Once the share certificates are signed by the Witness you can head back to Users & Roles and remove them from your company profile.
Send the signed share certificates to your investors
As soon as a share certificate is signed by both parties, it's automatically available in the Documents folder for that shareholder.
If you want to also email the share certificates to your shareholders just select one or more certificates and select Actions > Email Share Certificates.