Secondary Transactions – Transfers

The transactions that take place after a primary issuance has been granted are called secondary transactions. One of the most important secondary transactions is a share transfer.

Here is a step-by-step guide on how you can partially transfer shares from one shareholder to another.

Step 1: Log into your Eqvista account and select your company account. 

METHOD – 1

Once you do this, you will reach the dashboard where you will need to click on “Securities” and then on “Equities”. 

Step 2: The moment you do this, you will be directed to the page shown below. 

Here you will be able to see all the equity classes. Select the equity class from which you want to transfer the shares to someone else. In this case, we selected “Series B”.

Note: On this page, click on “Create New Class” to create an equity class and if you have created one, you can issue shares and implement a vesting schedule. 

Step 3: When you do this, a new panel will appear below showing you the details of those who have been granted shares from this equity class.

Note: If your shareholder, was offered shares from the “Series B” equity class and wants to transfer a few or all of their shares to someone, you will need to select “Series B” to reach the grant details.

Here, select the grant name beside the shareholder’s name who wants to transfer their shares to someone else. In this case, we selected “SB-005”.

There is another way by which you can reach the grant details.

METHOD – 2

Go to “Shareholders” in the left side menu when you log in to reach the page where you can see all the shareholders in the company. From here, click on the shareholder’s name – who would like to have their shares transferred. 

In this case, it would be Matt Daehler. When you do this, you will reach the following page where you can see all the grants that Matt Daehler has.

As you can see above, the one being transferred is from Series B. So, click on “SB-005” to reach the respective grant page.

Step 4: Through both the ways above, you will be redirected to the page showing that Edward William was issued 1000 shares under Series B with the certificate number SB-005, as below:

Once here, you can begin the process of transferring shares. Click on “Actions” and then from the mini drop-down menu, click on “Transfer Shares”.

Step 5: By doing this, a new panel will appear on the page asking you to add some details.

Here, you must first select the kind of transfer you are making. There are two options; one is a partial transfer and the other is a full transfer. 

To explain a bit – a partial transfer is when you want to transfer just a few shares from this grant to another shareholder. The full transfer is when all the shares are being transferred.

Note: You need to have a shareholder profile already created on the cap table to transfer the shares to them. You can also transfer all shares issued to you by clicking “Transfer all shares”. To learn how to transfer all shares, check out the support article!

In this case, we selected the option “Partial Transfer”. Type the shareholder’s name in the field, and it will appear on the right-hand side for you to select. When the name comes up, you will see a button beside it that says “Select”. Click on that.

Step 6: With this, a new panel will appear.

Select the equity class of which this new grant would be a part. After that, add the number of shares being transferred.

Since we selected “Partial Transfer”, we will have to enter the number of shares being transferred and the number of shares remaining will be automatically displayed. Then, the price per share, transfer date, and transfer grant name will be automatically filled.  

If the transfer date is not today and the price per share is not the same as the initial share grant, then you can edit that as well. As you edit the details, you will see the right-side panel updating as well. Once you have filled in all the details, click on “Submit Transfer”.

Step 7: This will take you back to the page where you can see the updated share number that Edward William has, which is after he just got some of his shares transferred.

Step 8: If you want to see the new share details, go back to the “Equities” page by clicking on “Securities” and then on “Equities”. Once you get here, click on the “Series B” equity class since the shares were transferred to this class and you will get the list of shareholders who have shares in the class as shown below:

For more details on the share transfer and the grant, click on the share name here. In this case, it is – “Trans from SB-005”.

Step 9: When you do this, you will reach the page where you can now see the details of this transfer.

Note: The transfer price won’t show on the grant details page but the original price.

You can see the new share certificate name here and to whom it is issued. But to see what effect it has on the secondary transactions, you will have to go to the secondary transaction list. The next step will help you with viewing this.

Step 10: For this, click on “Cap Table” and then on “Secondary transactions” from the drop-down menu to reach the following page:

From here, click on the “Transfers” tab. You will then be able to see the details of the transfer of shares just conducted, as highlighted above. Just like this, you can easily transfer shares on Eqvista. To know more about how to use Eqvista, check out the support articles here!