SeedLegals automatically creates a share certificate for every 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:
- Go to the Cap Table
- Click the Action button at top right, select Issue Share Certificates
- You'll now see a share certificate for every investment.
Check the dates
- While you're here, check that each share certificate is dated the same date or (better) a day after the investment was received from that person (money first, shares later, always).
- If the date needs changing, easy, just click the Pencil icon next to the date and set a new date.
- If you have SEIS or EIS investments, we recommend dating all the SEIS certificates with the date that the last SEIS monies were received in that round, and all the EIS certificates with the date that the last EIS monies were received in that round. 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.
Sign the share certificates
- If the company has two or more directors, then share certificates need to be signed by two directors, or
- if the company has only one director, by the director and a witness.
So, get each director (or a director and a witness, who you'll need to give a SeedLegals login and temporary Admin and Signatory permissions to, so they can get to the shares certs page) to go to the share certificates page, and click the SIGN ALL button, which signs all share certs in one click.
- As soon as a share cert is signed by both parties, it's automatically available in the Documents folder for that shareholder.
- You can sign multiple share certificates in one click - just select one or more, and they'll all be signed in one go.
- As soon as the share certs are signed by both parties, we suggest you email the new investors their share certs - you can also do that in one click, just select one or more share certificates and click Email Share Certificates in the Actions menu.
But, for the ultimate wow factor, click the gold Certificate icon to download a share cert as a PDF, print it on parchment paper and post to your investors. Old school to be sure, but a nice way to thank them for their investment.