How to issue share certificates without a single piece of paper

How to issue share certificates without a single piece of paper

Author: Scarlett Pierce
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Read time:  2 minutes
Published date:  January 14, 2019
In this article, we explain how our digital platform simplifies the process of issuing and managing share certificates for your shareholders.

For startups and scale-ups, share certificates are a fact of life. Fast growth means you’re regularly issuing shares to employees, advisors and new investors, which means you’re regularly grappling with share certification.

The manual process is anything but efficient: filling a template with certificate information, printing it, signing it by hand and finally posting it to the shareholder. Keeping track of paper certificates and replacing any that get misplaced is yet another time-consuming task.

The good news? Carta makes all this a thing of the past. We’ve converted share certificate issuances into an entirely digital process, which takes a matter of minutes and is just as reliable as old-school methods.

If you've enabled the shareholder register and share certificate functions in your account settings, share certificates are automatically produced every time a shareholder receives shares in your company. 

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Once the share certificate feature is active in your account, you’ll need to adjust the settings to suit your company’s needs and upload a template before generating share certificates.

 

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Each time a share certificate is generated, you have a choice: you and your witness can sign the certificate immediately to make it official, or you can save it in draft mode. Either way, you’ll be able to see the status of every share certificate in your account by visiting the certificates tab under ‘Shares’.

 

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You and your witness can sign share certificates electronically via DocuSign. The remaining information is completed automatically, using data from your shareholder register.

 

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Once signed, the share certificate is stored securely on the platform and can be exported as a PDF at any time. The new shareholder will be notified automatically and prompted to log into their account, where they can access their certificate.

Any share certificates issued and signed offline can also be stored on the platform. Simply upload each document as a PDF file and assign it to the relevant shareholder to ensure it’s visible in their account.

Whenever shares are cancelled or sold, the shareholder’s certificate is automatically updated to reflect the change. It will remain on file for record-keeping purposes.

 

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Scarlett Pierce is Carta’s Product Marketing Manager for the UK and Europe. She joined the team in late 2022 when Carta acquired European equity management startup Capdesk. Prior to Capdesk, Scarlett worked as a digital marketer for brands as diverse as the UK Government, Amazon Alexa and Louis Vuitton.
DISCLOSURE: This publication contains general information only and eShares, Inc. dba Carta, Inc. (“Carta”) is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services.  This publication is not a substitute for such professional advice or services nor should it be used as a basis for any decision or action that may affect your business or interests.  Before making any decision or taking any action that may affect your business or interests, you should consult a qualified professional advisor.  This communication is not intended as a recommendation, offer or solicitation for the purchase or sale of any security.  Carta does not assume any liability for reliance on the information provided herein. This post contains links to articles or other information that may be contained on third-party websites.  The inclusion of any hyperlink is not and does not imply any endorsement, approval, investigation, or verification by Carta, and Carta does not endorse or accept responsibility for the content, or the use, of such third-party websites. Carta assumes no liability for any inaccuracies, errors or omissions in or from any data or other information provided on such third-party websites. © 2024 eShares, Inc. dba Carta, Inc. All rights reserved. Reproduction prohibited.