Record a disposal of shares
When a Registered Holder has disposed of shares from one of your Business Entities within GEMS, you'll record a Disposal Transaction on the Stockholder/Shareholder Summary Screen.
We will use the following scenario to demonstrate this task, the entity Bristol NA Holdings has disposed of its 2,000,000 shares of Ironwood Equity Solutions common stock on August 1st, 2025, to increase its cash holdings. We now need to record that disposal on the Stockholder/Shareholder Summary Screen.
Navigate to the Stockholder/Shareholder Summary Screen of the entity who originally issued the shares. In this scenario, we’ll navigate to the Stockholder/Shareholder Summary Screen for Ironwood Equity Solutions.
Select the appropriate Transaction Type from the drop-down menu. In this scenario, we’ll select Disposal.
Click New Security Transaction.
A new Disposal Transaction pane will open. In the Registered Holder field, click the Lookup List icon to search the Entity to whom the shares were legally issued. In this scenario, we'll select Bristol NA Holdings.
The Beneficial Holder is the entity who ultimately benefits from the disposal of shares. GEMS will automatically copy down the Registered Holder entity into the Beneficial Holder field since they're often the same, but you may change it if needed. In this scenario, Bristol NA Holdings is both the Registered and Beneficial Holder, so we'll leave Bristol NA Holdings in this field.
GEMS automatically completes the Security field if the selected Registered Holder held only one type of Security. In this scenario, Bristol NA Holdings only held Common stock Securities, so GEMS selected Common stock in this field.
Enter the date when the issuance occurred in the Date Disposed field. In this scenario, we'll enter Aug 01 2025.
The Number of Securities Available field will display how many shares can be disposed. Initially, it will show the total holdings of the selected Registered Holder and the selected Security. In this scenario, Bristol NA Holdings initially holds 2,000,000 Common stock Securities.
Enter the number of Securities being disposed by the Registered Holder in the Number Disposed field. This value can be equal to or less than the Number of Securities Available. GEMS will calculate the number of Securities remaining and will display an updated amount in the Number of Securities Available field. In this scenario, we entered 2,000,000. GEMS has updated the Number of Securities Available for Bristol NA Holdings to 0.
GEMS automatically completes the Value Disposed field with the value of the number of shares entered in the Number Disposed field based on the par value of the Security. In this scenario, GEMS has calculated it to be 20,000.
Complete the additional optional fields on the page as needed, then click SAVE.
If the issuing company bought back or redeemed shares from a Registered holder, or if they forfeited their shares, follow the above steps using the Buy Back, Redeem, or Forfeit Transaction Types.