How to sell your shares in a secondary transaction as a corporate stakeholder

Your company will need to be invited to sell your shares from the issuing company and this article explains what happens next.

The online secondary feature on Capdesk allows you, as a seller, to execute an online secondary transaction with a buyer (two-party). 

Below are the steps that you need to take to sell your equity:

1a. You will need to log in or sign up to Capdesk

1b. You will have to claim your company (if you have not already)

2. Verifying your identity, the company identity and establishing a signatory

3. Complete a Sales order form

4. Sign Power of Attorney (PoA) document

 

1. Log in or sign up to Capdesk


You will receive an email invite to sell your equity in the company and there will be a link to log in or sign up to Capdesk.

Screenshot 2020-09-07 at 13.50.09The email invite highlights an expiration date which lets you know how long you have until you can no longer put your shares up for sale.

1b. Claim your Company

When a company on Capdesk has registered shares owned by a company, there will be a contact person for that company.

If you are that person, you will need to "Claim the Company" on Capdesk. This will allow you to see the shares of that company in your portfolio as a separate entity. Please click here for information on how to do this.

2. Verifying your identity, the company identity and establishing a signatory


Before you can sell your equity, you will need to verify your identity. You can read more on how to verify here.

Additionally, you will need to verify your company. You can read more on how to verify here.

Furthermore, you will need to establish a signatory for the company. You can read more on how to select a default signatory here.

3. Complete a sales order form

You can view your investments in two ways:

1.Go to "Administrated" -> click on your company -> click the company portfolio header -> Portfolio. Here, you will find all holdings that your company has registered on Capdesk.

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2. Alternatively, you can access your personal portfolio. Click 'portfolio of' and change this to the company that you claimed. 

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In your portfolio, you will notice the following notification in your portfolio.

To proceed, go to your current holdings and click the relevant company’s corresponding action button (3 dots) and click on ‘Sell Equity’.

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N.B if you have not completed step 2 (verifications), you will face the following error message.

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You will need to complete the sale order form which includes adding your bank account as this is the account that money will be paid into for the transaction. To do this, click ‘Add Bank Account’. We currently support IBAN and SWIFT/BIC. Choose your bank account's country of origin so we know which format to use.

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Moving onto the 'Shares to Sell' section, you will see the amount of shares that you are available to sell. Out of this available quantity, you will need to set a maximum and minimum of shares that you wish to sell. Once these values have been entered, you will be able to see the proceeds of the transaction before any fees. This is simply calculated by multiplying the maximum and minimum share values by the price per share.

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Please note that there is a fee of 1.5%, with a maximum value of £500 per seller and a minimum value of £15 per seller.

 

Once these details have been entered, click ‘Place Order’.

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4. Signing the Power of Attorney (PoA) document


After placing your order, you will notice the 'Transactions in Progress' header appear in your portfolio. Here, you will find details of the sales order. Additionally, this is where you will be able to sign the PoA. To do this, click the corresponding action button (3 dots) -> configure signatories.

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You will then be able to decide who is responsible to sign the PoA. When choosing the signatory, they have to be a current account administrator with signing access (as detailed above). You can also decide if the signing will be witnessed. 

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Once the signatory has been configured, they will be able to log into their account and access this page. They can then click the transactions corresponding action button -> Review and Sign. Additionally, they can access their tasks page in the top right corner (the ticked checkbox icon). 

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The signatory will then be redirected to DocuSign to sign the PoA document. The PoA document will need to be signed to state that as the seller, you agree that the issuing company can sign any relevant documents (share purchase agreement (SPA) and stock transfer form (STF)) on your behalf.

If you selected that the signing will be witnessed then before you can sign the PoA, you will be asked to assign a witness. To add a witness, click ‘Add New Witness’. You will then have to state their first name, last name and email address. Once done, click ‘Next’ (if a witness has already been recorded on your account then you can simply bypass this process and click on their name).


Once you have added a witness, you will see the following page. This means that you need to wait until the witness is available to sign the PoA.

WitnessBy clicking ‘Next’, the witness will be invited to sign up to Capdesk via email and then they will need to navigate to their task section and will see a task asking them to “witness and sign” the PoA. Only once they have clicked the link will you be redirected to sign the PoA.

If you are ready to sign the PoA, click 'Continue'. 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, review the agreement to ensure all details are correct. Then click 'Start' on the left-hand-side. This will take you to where you are required to sign, you will need 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.

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To finalise the signing, select the "Finish" button at the top of your screen.



Once finished, the witness will be redirected to the PoA so that they can carry out the same process. 

Additionally, you will be able to see the progress of your transaction in your portfolio. Once the status changes to ‘In Progress Awaiting Others’, the sales order has been completed. This means that you are now waiting for the buyer to place their order and for the issuer to approve. The buyer will be able to decide how many shares they wish to buy, depending on the interval set by your maximum and minimum. 

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By clicking on ‘Sales Order’ -> Documents section, you will be able to view and download the signed version of the PoA. By downloading the PoA, you will be able to find details of the agreed terms, as well as the details of the transaction (i.e the maximum and minimum amount of shares that you are willing to sell).

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The buyer now has up until the purchase order closing date to decide how many shares they wish to buy.


If you need further assistance, you can reach out to us by submitting a support ticket here.