Add Stockholder/Shareholder Transactions

Introduction

To ensure that share premiums are correctly reported, the correct fields must be filled when security transactions are created. This enables GEMS to automatically calculate the correct share premiums for consolidation, subdivision and conversion transactions and also to report the premiums correctly in the AR01 and SH01 forms.

This document follows an example to illustrate how to make sure GEMS calculates these values correctly. Entity A has 2 share classes:

1. To allot shares to shareholders, do the following:

Navigate to Securities Management > Shareholder/ Stockholder Summary.

2. Select Allotment from the dropdown list in the top-right corner and click the New Security Transaction button.

3. Select the Registered Holder of the share. The Beneficial Holder field is automatically populated with the registered holder but you can change it if needed.

In this example, the registered holder is UserEduc LTD.

4. Select the share class to be allotted from the Security field and select or enter the date in which they were allotted to the shareholder. In this example we are allotting shares of share class 'Ordinary Shares'.

Enter the number of shares allotted to the shareholder - in this example we will allot 100. GEMS calculates the value of the allotted shares by multiplying the allotted number with the nominal value of the share class. This value is then automatically populated in the Value Allotted field. In this example, this is 100 * £2.50 = £250

5. Select the Purchase Price Currency and enter the purchase price per security in the corresponding fields. This should include the share premium, if any.

6. In the Payment Details section, enter the Price Paid Up Per Security, Check or leave unchecked the Fully Paid Up checkbox and select the correct option from the the Payment Type dropdown.

GEMS uses these details to automatically calculate the Total Cash Consideration and the Total Consideration for the shares. In this example, the shares are fully paid up because the Price Paid Up Per Security = Purchase Price Per Security.

7. Once you have entered all these details, click the Save button.

The record of the transaction is added to the Shareholder/ Stockholder Summary screen.

8. To view the payment details of this transaction, click on Transactions.

9. A summary payment record is displayed for the allotment transaction.

10. Click on the Properties (magnifying glass) icon to view the details of the payment record.

11. The Share Premium per Security is visible from the Allotment Transaction section.

To create a subdivision transaction, do the following:

Navigate to Securities Management > Shareholder/ Stockholder Summary.

Select ‘Subdivision’ from the dropdown list in the top-right corner and then click the New Security Transaction hyperlink.

Select the registered holder of the shareholding to be subdivided from the ‘Registered Holder’ lookup list. In this case we select UserEduc LTD's shareholding of the Ordinary share class.

The ‘Beneficial Holder’ field is automatically populated with the registered holder but you can change it if needed. The Security to subdivide and number of securities available are also automatically populated.

Enter the number of securities to subdivide. The value of these securities is automatically calculated. This is the aggregate nominal value (i.e. number of securities multiplied by the nominal value).

Select the new share to which the existing share is being subdivided and enter the number of new shares being created. The value of these securities is automatically calculated. This is the aggregate nominal value (i.e. number of securities multiplied by the nominal value).

Enter the purchase price per share for the new shares. Also, enter the date of subdivision.

In the Payment Details section, enter the price paid up per security, whether the shares are fully paid up and whether they have been paid for in cash. In this example, the shares are fully paid up because the Price Paid Up Per Security = Purchase Price Per Security.

Once you have entered all these details, click the Save button.

The record of the transaction is added to the Shareholder/ Stockholder Summary screen.

To view the payment details of this transaction, click on Transactions. Summary payment records are displayed for all the transactions so far.

Click on the properties (magnifying glass) icon to view the details of the payment records. The Share Premium per Security is visible on this screen.

To consolidate a shareholding into another class of a greater value, do the following:

Navigate to Securities Management > Shareholder/ Stockholder Summary.

Select ‘Consolidation’ from the dropdown list in the top-right corner and then click New Security Transaction.

Select the registered holder of the shareholding being consolidated from the ‘Registered Holder’ lookup list. In this case we choose the Ordinary Shares £1 shareholding.

The ‘Beneficial Holder’ field is automatically populated with the registered holder but you can change it if needed. The Security to consolidate and number of securities available are also automatically populated.

Enter the number of securities to consolidate. The value of these securities is automatically calculated. This is the aggregate nominal value (i.e. number of securities multiplied by the nominal value).

Select the new share with which the existing share is being consolidated and enter the number of new shares being created. The value of these securities is automatically calculated. This is the aggregate nominal value (i.e. number of securities multiplied by the nominal value).

Enter the purchase price per share for the new shares. Also, enter the date of consolidation.

In the Payment Details section, enter the price paid up per security, whether the shares are fully paid up and whether they have been paid for in cash. In this example, the shares are fully paid up because the Price Paid Up Per Security = Purchase Price Per Security.

Once you have entered all these details, click the Save button.

The record of the transaction is added to the Shareholder/ Stockholder Summary screen.

To view the payment details of this transaction, click on Transactions. Summary payment records are displayed for all the transactions so far.

Click on the properties (magnifying glass) icon to view the details of the payment records. The Share Premium per Security is visible on this screen.

To convert a shareholding from one share class to another, do the following:

Navigate to Securities Management > Shareholder/ Stockholder Summary.

Select ‘Conversion’ from the dropdown list in the top-right corner and then click the New Security Transaction.

Select the registered holder of the shareholding to be converted from the ‘Registered Holder’ lookup list. At the moment you can choose from UserEduc LTD’s two shareholdings - in this case we choose the 'Ordinary Shares'.

The ‘Beneficial Holder’ field is automatically populated with the registered holder but you can change it if needed. The Security to convert and number of securities available are also automatically populated.

Enter the number of securities to convert. The value of these securities is automatically calculated. This is the aggregate nominal value (i.e. number of securities multiplied by the nominal value).

Select the share to which the existing share is being converted and enter the number of new shares being created. The value of these securities is automatically calculated. This is the aggregate nominal value (i.e. number of securities multiplied by the nominal value).

Enter the purchase price per share for the new shares. Also, enter the date of conversion.

In the Payment Details section, enter the price paid up per security, whether the shares are fully paid up and whether they have been paid for in cash. In this example, the shares are fully paid up because the Price Paid Up Per Security = Purchase Price Per Security.

Once you have entered all these details, click the Save button.

The record of the transaction is added to the Shareholder/ Stockholder Summary screen.

Click on the properties (magnifying glass) icon to view the details of the payment records. The Share Premium per Security is visible on this screen.

GEMS generates the Statement of Capital automatically based on the figures in the Shareholder/ Stockholder summary. The Statement of Capital can be viewed within GEMS and it is also included when you generate the AR01 and SH01 forms.

The Statement of Capital in GEMS can be viewed by going to Securities Management > Statement of Capital.

1.Open the entity snapshot and navigate to the Stockholders panel. Click the Folder symbol next to the Registered Holder you wish to delete. This will open up all the transactions for that stockholder. You will need to delete each individual transaction to fully delete the Shareholder/Stockholder.

2. To delete an individual transaction click the 3 dots next to a transaction and click Open.

3. This will open the transaction in more detail, click Delete.

4. Tick the Delete Disposal Transaction Details checkbox and click Submit.

Only repeat if you wish to delete all individual transactions for the selected Stockholder. If all transactions are deleted then the Stockholder will be removed

1. To track stockholders/shareholders a list of those who are past and present can be found by navigating to the Entity Snapshot> View More Details>

2. Click Stockholder/Shareholder Summary.

3. View all past and present Stockholders/Shareholders