This guide is the follow up from the 'How to issue phantom (virtual) shares (manually on Capdesk)' support article. If you would like to know how to record phantom shares (signed offline), you can do so here.
Before you can use the phantom share signing feature, please note you must be live.
Using any of the online signing features (share certificates, option grant signing, etc) on Capdesk will, by default, use our DocuSign account and this will cost you £2.50 per document to cover the cost of signing. However, we allow you to log in to your own DocuSign account so there is no additional cost for you. For more assistance on how to add your own Docusign account, you can find the support article here.
The first part of executing a phantom share signing is to upload your phantom share agreement that you want the shareholder to sign, navigate to the "Online Document Templates" tab found on phantom shares page (under Equity Awards) and then click on the green "Add Template" button.
You will be asked to select the type of agreement, you can chose whether the issuance is for an individual or a corporate stakeholder. This is whether the document is to be assigned to an individual stakeholder or a corporate stakeholder, please choose the relevant one.
From here you will have to input the phantom share plan you will like to add onto the agreement (it will appear on the drop down). If it does not appear in the drop down, please create the plan first.
Additionally, you will need to input a name of the phantom share template (to make it easier to identify in the future).
Next, click on the 'Add Dynamic Document' button. This refers to your actual agreement template, and it's referred to as dynamic because every time you issue a new grant on Capdesk, the platform will automatically fill out the template with the data that is relevant in each occasion (eg. the name of each new grantholder, date, etc.).
When you click on this, you will be prompted to choose the agreement type, this involves who you would like to sign the agreement, please select the relevant one for you. The options are whether to have it signed by the grantholder and issuer or just the issuer.
After this, you will be asked to upload the document. Do this by clicking 'Choose File'. Please note that there are a number of Capdesk placeholders that needs to be included in the template you provide in order for it to be compatible with Capdesk. You can see a list of these by clicking on 'View available placeholders'.
For your convenience, Capdesk provides a sample template available for download. However, please note that this is a very basic sample template, intended to give you an understanding of what a template might look like with the Capdesk placeholders. It is not intended for use. If you do not already have a warrant agreement of your own, we recommend you consult your legal adviser.
Once you have uploaded your phantom share agreement that includes the Capdesk placeholders, you should be able to see it in a narrow green box on the right side of your screen, as shown below. When you are ready, click the green 'Upload' button on the right.
After clicking upload, you will be taken back to the "New phantom share template" page.
If you wish, you can also upload static documents (i.e. documents that will be sent to all grantholders when they receive a grant, without any adjustments made to them). To do so, click 'Add Document' (green button under 'Static Documents') and select the document you wish to add. Then click 'Save' to attach the relevant document.
When you've completed the process, click the green 'Save' button at the bottom right of your screen.
This will take you back to the 'Online Document Templates' section of your 'Phantom Shares' tab where you should now be able to see the new template under the name you gave it earlier on.
If you would like to make any adjustments to the document (changing the name, updating/adding documents etc.), click the corresponding action button (3 dots) and then click edit. This will take you back to the "New phantom share template" page.
Executing grants (for phantom share signing) on Capdesk:
Before proceeding, make sure that the relevant phantom share valuations have been added to Capdesk. To add the valuation, go to Shares page -> Valuations, highlighted below.
Fill in the details of the valuation, making sure that 'Phantom Share Value' has been chosen as the type.
Once you have clicked 'Save' at the bottom of the page, the valuation will appear in the list below. Click 'View' to find further details of the valuation or click the corresponding action button (3 dots) to make any changes.
Click the phantom shares tab (under Equity Awards) -> Online Issuances -> Issue Grant Online (Green Button).
Choose the stakeholder that you would like to grant the phantom shares to. If the stakeholder is currently not recorded on Capdesk, click 'Or Add New Phantom Share Holder Instead' and fill out the relevant details.
You will then be taken to the 'Phantom Share Grant' page. Add the relevant phantom share plan as well as the document template that you previously added to Capdesk.
Proceed to fill out the rest of the required fields for the grant. If you need further support on this, click here.
Once complete, you have the option to either 'Save Draft' or 'Send for signing'.
Clicking 'Save Draft' will direct you to the 'Online Issuances' page where you can view the grant and agreement document before it is sent for signing.
Once happy, click the action button -> Send for signing (the same as if you clicked send for signing initially). Once sent for signing, you have to wait for the grant recipient and their witness (which the grant holder will provide themselves if applicable) to sign the grant agreement before you and your own witness (if applicable) can do so too.
[N.B. please ensure you have selected the default signatory (the person who will sign documents on behalf of the company). You can learn more about how add and configure signatories here.]
You can cancel your phantom share grant signing by going back into the "Phantom Shares'" and "Online Issuances" tabs, finding the name of your grantholder, and clicking on the action button (...) on the far right of their name section.
Here you can see the stage at which your grant is at the moment under Status, you can also filter this section to have online the grants that require action to continue the process to speed up your time getting the documents signed.
This is also where you will be able to see when it's time for you and your witness to sign the document, so when in the signing process, make sure to check this tab regularly.
The issuer signatory can sign by clicking on 'Review and Sign'.
This will direct you to DocuSign where you will be shown the grant agreement but will not be allowed to see it in full before you select the "Continue Button". If you wish to take a different action (eg. sign later, decline a.o.) you can do so by choosing the relevant option in "More Options".
If you clicked continue, you must read the first page of the agreement to ensure all details are correct. Then click 'Start' on the left-hand-side.
This will take you to the last page of the document, where you'll be required to add an electronic signature indicated by the yellow and red icon shown below:
To sign, click on the icon. This will automatically offer you two options of a virtual signature to choose from. Click on the one you prefer and select "Adopt and Sign" to add it to the document.
To finalise the signing, select the "Finish" button at the top of your screen.
Now that all parties have signed, the grant issuance is official. If you navigate back to your "Online Issuances" tab, you should be able to see that the "Status" section of your grant has changed to "Completed".
Finally, if you wish to download the signed phantom share agreement in the future, click on the "View" button next to their name. On the right-hand side a tab called "Phantom Share Grant" will open, scroll down to the bottom and you'll find it under "Grant Documents".
If you need further assistance, you can reach out by submitting a support article here.