· Repurchasing Shares Workflow (Upload Only and Not During Termination)

Introduction

This workflow will help you record the repurchase of shares from an employee, consultant, or other stakeholder from your company in the platform. This workflow is for the repurchase of stock that occurs when the repurchase is not tied to a termination of that stakeholder's relationship with your company.

Please keep in mind that this workflow is upload only meaning it will expect that you have a fully executed Repurchase Agreement and Board Approval for the transaction.

See this article for steps on how to capture a repurchase during termination. 

The Repurchase Workflow

Let's Get Started

The Repurchase Shares workflow will walk you through the process of uploading the documentation regarding your company's repurchase of shares from a stockholder. You will want to have your Repurchase Agreement available for upload when you begin this workflow. It is possible to defer this document if you do not yet have this document handy. Deferring the agreement will create a placeholder in your data room so you can upload it later.

To begin, from the Company Workspace go to Start New Workflow > Equity > Repurchase Shares. 

Provide Repurchase Agreement

1. Click Document Options to upload the agreement from your computer, or to select it from the Data Room.
2. Enter the effective date of the repurchase and click Continue.

Define Repurchases

1. Click Add Repurchase.
2. Select the stockholder, and the certificate to be repurchased.
3. Enter the number of shares to be repurchased, and the repurchase price per share. 
4. Select the method for the resulting certificate, if applicable: upload or defer the stock certificate, generate a new stock certificate in the platform, or to link to an existing stock certificate already on your cap table. 
5. Confirm the details of the repurchase, and add any necessary restrictive legends. 
6. If there are multiple repurchases, repeat these steps. 

Upload Board Approval 

1. Click Document Options to attach the approval documents.
2. Select the type of approval, and enter the effective date. 

Checkpoint

Review the documents before continuing for review and signature. If any resulting certificates are pending, the signatories will be prompted to sign the stock certificate(s), after which the workflow will be finished. Your Cap Table will be updated to show the appropriate number of shares, reflecting the repurchase.

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Fidelity provides cap table management and other administrative services to private companies and their equity compensation plans.

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