Once your Agreement has been signed it's time to close your Instant Investment.
1. Create your Board Resolution to approve the investment
Complete the Board Resolution document on SeedLegals.
You’ll need to convene a board meeting in accordance with your Articles (which could just be a Skype call with the other board members), and then a Founder Director should sign the Board Resolution. Easy.
SeedLegals will automatically date your Instant Investment Agreement with the date of the last signature. To find that date, scroll to the signature block at the end of the document, and note the date.
Then sign the Board Resolution and date it the same day as the Instant Investment Agreement.
2. Get your Money
Formally, the right time to ask your investors to send their money is after everyone has signed the above documents. But, sometimes you need the cash, and anyway sometimes an investor will jump the gun and send you the money the moment they’ve signed.
So, a common question is “Can I take the money sooner?”.
And the answer is yes, you can take money from each investor immediately after they have signed the above documents (we don’t recommend taking their money before they’ve signed because you run into problems if they don’t agree to the terms, or want a change made, and then things get messy).
3. Update Companies House
Before you can get back to business there are still a few of actions requiring your attention, these involving filing documents at Companies House.
a. Create your SH01 form:
You’ll find your SH01 right at the bottom of your Instant Investment page in SeedLegals. Please ensure that the Target Close date at the top of the page has been updated, so that the date is at least one day later when you received the deposit of funds. Once that's done, create the document, then sign it.
b. Download the SH01 document from SeedLegals.
c. Post these documents to Companies House:
If your company is registered in England and Wales the address is:
Registrar of Companies
Cardiff, CF14 3UZ
(If your company is registered in Scotland or Northern Ireland you’ll need to check your local Companies House postal address)
You can also file your SH01 online if you are registered with web filing.
4. Issue the Certificate of Shares To Your Investor
Click Issue share certificate at the bottom of your Instant Investment page
Go to Shares, then click the Certificates tab.
If you’re an Admin and a Signatory (as tagged in your Users & Roles profile), please sign the share certificates, see our article, here.
Share the certificates with your investors.
Checklist: Getting the Dates Right!
Your board meeting normally takes place on the same day or just slightly before the documents are signed. Double check you have dated your Board Resolution properly.
The SH01 must be dated after the last deposit of funds from your investors Ensure you set the Target Close to after you've received your funds.