There are a number of corporate events that can occur which affect the company’s shareholders and the company in various ways. The following may be seen as a short introduction to different events the company or its owners may face that must be registered in the share register.
BeUnlisted’s digital share register and online service support all of these corporate events and make it easier for the company to manage corporate events correctly.
A limited liability company can alter its share capital in five different ways:
New share issue
A new share issue is when a company issues new shares against payment. The payment need not consist of cash and may for example be comprised of assets or settlement of liabilities absorbed by the company.
A bonus issue means that resources already available in the company are transferred to share capital. A bonus issue may be conducted by either increasing the company’s number of shares or increasing a share’s par value.
A convertible bond is a debt obligation issued by the company, where the holder has the right and obligation to redeem their debt for shares in the company. When the right or obligation is utilised, this increases share capital as well as the number of shares in the company.
Stock option rights
A stock option is a right in the future to subscribe for shares in the company as payment. When conversion to shares occurs, the company’s share capital and number of shares are increased.
Reduction of share capital
A reduction means that the company reduces its share capital. Share capital may only be reduced due to any of the following three reasons: to cover losses, refunds to owners and/or transfer to a free fund.
Other Corporate Events
Further, several other corporate events occur that must be registered in the share register. Other corporate events could be e.g. splits, reverse splits, reclassification or introduction/removal of various pre-emptions or reservations.
In addition to supporting all the above corporate events, BeUnlisted’s online service has several other advantages such as a monitored storage location for the company’s other key corporate documents. The option to provide a temporary sign in for e.g. the company’s accountant or an external party to a legal review, etc. The company and BeUnlisted determine who information is shared with, information about the company and its owners is never shared with third parties.