How to set up and execute share grants

This article breaks down the steps required to set up, execute and sign a share grant

A couple of things to note:

  • Your company will need to be live to use this feature
  • You can log in to your own DocuSign account (for the electronic signatures) otherwise you can use Capdesks' account but you will incur a fee of £2.50 per signed document. 
  • If the share grants are being issued out of an incentive pool, you will need to ensure you have enough available to grant.
You will need to set up the share grant agreement on Capdesk, issue the share grants that you would like to be signed and allow for all relevant parties to complete the signing:
  1. Setting up the share grant agreement
  2. Executing share grant issuances
  3. Signing the agreement

1. Setting up the share grant agreement

Setting up consists of:

  1. Uploading share grant agreement template
  2. Provide admin signing access
  3. Modify email template (optional)

Uploading agreement template

Before you can set up the agreement, you will need to have a share grant plan created.

To add the agreement template, go to Share Grants (under Equity Awards) -> Online Document Templates -> Add Template (green button).

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You will then have to select a template type, either a grant issuance to an individual stakeholder or a corporate stakeholder. Additionally, the corresponding plan and name need to be selected. 

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Next, click on the 'Dynamic Document' button. This refers to your actual agreement template, and they are reusable templates which Capdesk fills in with personalised data for each participant.

Dynamic document contain placeholders similar to <<capdesk:Grantholder:Name>>. These placeholders are the "dynamic" parts of the document which are later substituted with the participant's information.

For example, you can use the same Grant Agreement for several employees and Capdesk will output a personalised version for each one including their name, vesting dates, exercise price, etc. 

 

You will need to select the type share grant agreement, whether it is signed by both the grantholder and the issuer (this could also be by deeds), or only by the issuer. 

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Next, click 'Choose File' and upload the agreement, the agreement will require Capdesk placeholders to be entered in the agreement so we can populate the information. You can see a list of these by clicking on 'View available placeholders'.

See here to understand what each placeholder means.

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For your convenience, Capdesk provides a sample template available for download.

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 share grant agreement of your own, we recommend you consult your legal adviser.

Additionally, you can add "Static Documents" which are any other documents you would like your grantholder to have access to (e.g. exercise notice) and this is not mandatory.

Once you have clicked on save, it will appear under 'Online Document Templates'.

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Provide admin signing access:

Ensure you have selected the default signatory (the person who will sign documents on behalf of the company). 

You will need to go to User Access -> Edit access (for admin) -> make this admin default signatory.

 

Modify email template (optional)
The grantholder will receive an email invitation inviting them to accept the grant. If you would like to view this email and edit it, click Email Templates (under Settings) -> corresponding action button -> Edit.

You can also send yourself a preview of what the email would look like in your inbox, you can do so by clicking on 'Send' from the action button.

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2. Executing share grant issuances

To issue share grants, go to Share Grants (under Equity Awards) -> Online Issuances -> Issue Grant Online.

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Then, select the grantholder that you would like to issue the share grant to. If the grantholder is not currently recorded on Capdesk, click 'Or Add New Shareholder Instead' and enter their corresponding details to register them. 

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Once the grantholder has been selected, select the relevant share plan and the document template that you previously uploaded. You will also need to enter the details about the share grant. 

Learn more about how to manually record share grants.

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Once this data has been filled in, you can either save the grant as a draft or send it for signing.


If you have chosen to save the grant as a draft, it will appear on the 'Online Issuances' page. To review the agreement to see what it looks like, click 'View' and see the 'Documents' section.

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When you are ready to sign the share grant, click the corresponding action button -> 'Send for Signing'.

If you need to update the share grant details, you will need to delete the share grant then issue the share grant again for the agreement to be updated.

If you edit the share grant, the updated information will not be reflected in the agreement.

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Once sent for signing, you will see the status of the share grant will change to 'In Progress' and highlights who needs to sign the agreement (in the 'Assignee' column). 

 

3. Signing the agreement

The grant is now ready for the grantholder to review and sign. Once the grantholder have signed, you will need to sign the agreement and the status is 'Issuer signing awaiting Signatures'.

Click on the action button (...) on the far right of your name section and select 'Review and Sign'.

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From here you may notice the 'Configure Signatories' option, this is if you have more than one default signatory (i.e other people can sign the documents). Read more about how to change signatories.

If you are ready to sign the agreement, 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'.

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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:

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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.

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Once all parties have completed the signing, the status will be marked as complete. If you would like to view the signed document, click View -> Grant Documents. Here you will find the document which you can download.

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