How to add share classes on Capboard?

How to Add Share Classes on Capboard

Having multiple share classes is a common practice as your company matures and the number of different stakeholders grows. Here is how to create and add share classes on Capboard:

1. Navigate to Share Classes:

   • Go to Ownership -> Share Classes on the left-side menu of your company's account. Here, you will see the current share classes (typically, common stock).

2. Create a New Share Class:

   • To create a new share class, click on the “Add Share Class” button at the top right corner.

3. Enter Share Class Details:

   • Add the name of the share class (e.g., Preferred Seed) and its corresponding details:
     • Nominal share price: Enter the face value of the share.
     • Voting rights: Indicate whether the shares have voting rights.
     • Dividend rights: Specify if the shares have rights to dividends.
     • Liquidation preference: Include the seniority, multiple, and if applicable, the multiple and interest rate.
     • Anti-dilution provisions: State any anti-dilution clauses.
     • Tax value: Enter the tax share price.
     • Hurdle: Indicate the hurdle share price.
     • Issue share certificates: Check if there is a need to issue share certificates.
     • Additional notes: Add any extra information relevant to the share class.

4. Authorized Shares:

   • You can also set up the number of authorized shares for each share class by toggling the “Authorized Shares” option. This feature allows you to define the maximum number of shares that can be issued for this specific class.

5. Save the Share Class:

   • Once all the details are added, click on Save. The newly created share class should appear on the list of existing share classes.

6. Edit or Update Share Classes:

   • You can make changes to the share classes by clicking on the edit button next to the class you want to edit or update.

7. Delete a Share Class:

   • To delete a share class, ensure this type of share is not issued to anyone in your company. Once confirmed, you can delete a share class using the “Delete” button next to it.

Below is a visual guide on how to add share classes on Capboard:

By following these steps, you can efficiently manage and customize your company's equity structure using Capboard. This flexibility is crucial as your company grows and the needs of your stakeholders.