Record a Share Disposal
Use the Share Disposal wizard when the company buys back shares from the shareholder or the other way around.
Before you start
You can only dispose of shares that have been allotted to shareholders. Refer to Allot Shares to a Shareholder to learn more.
To record a share disposal for one shareholder, follow the steps below. If you want to dispose of shares for multiple shareholders in one go, refer to Record Share Disposals for Multiple Shareholders.
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Open the company record and go to Ownership > Shareholders.
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Select Options
for the shareholder who is disposing of the shares, then select Share Disposal to open the Share Disposal wizard.Alternatively, you can select Wizards > Share Disposal to open the Share Disposal wizard. Both options open the one-page wizard. The Share Disposal wizard is also available in a multi-page format. To open that, select Wizards > Multi-Page Wizards > Share Disposal.
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In the Type of Disposal section on the Share Disposal page, select the disposal type.
The name of the wizard updates to reflect the selected disposal type.
Note
Make sure you select the correct type of disposal to ensure that the event is recorded correctly in Shares History.
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In the Board Meeting section, enter the board meeting date when the share event was or is to be approved.
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Review the information in the Share Class and Existing Shareholders sections and update it if required.
These sections are automatically populated if you initiated the share disposal event from the Options
menu for a shareholder.Note
If the Prompt for beneficial owner on new company share events system option or the Prompt for beneficial owner on new share event wizards company option is enabled, the Existing Beneficial Owner section also displays either populated with the beneficial owner that has been entered in the system or empty, if no beneficial owner has been entered. Refer to System Options or Company Options to learn more.
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In the Disposal section, enter the event date and the number of shares that are to be disposed of.
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In the Cancel Certificates section, select the share certificates to be cancelled as a result of the disposal.
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In the Consideration section, enter the amount paid per share and the total paid if the consideration paid differs from the nominal value.
Note
When you record a buyback for a company registered in the United Kingdom, there is an HMRC section between the Consideration and the Notes sections where you can enter the HMRC authentication code. This code is output to the SH03 form at the end of the wizard if you select to generate the form.
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In the Notes section, enter any relevant notes and record whether the notes should appear on the statutory registers. Select Next.
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On the Action page, choose whether you want to save the event as pending or update all records immediately, then select Next.
In the Tracking section, you can assign the event to a specific user and add a reminder. Refer to Pending events to learn more.
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On the Documents page, select the documents you want to generate for the event and select Next.
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On the Finish page, wait while the event and the documents are processed. When the status shows as Completed, select Finish to complete the wizard.
If you chose to update all records immediately, the Shareholders page updates to show the disposal. You can find the documents produced for this event in Documents > Working Documents.
If you chose to save the event as a pending event, you can find the pending event in Compliance > Pending Events. You can action the pending event there when required. When the event is actioned, the Shareholders page updates.
