Record Directors' Interest in Shares
Directors' interests in shares can be entered either automatically or manually.
The system automatically records a director's interest in shares if the director was appointed on the system prior to becoming a shareholder even if the two events happened on the same day.
Manual entries of interests in shares are required if the director became a shareholder prior to becoming a director of the company, or if your members' information is not kept in Diligent Entities, but you need to keep a register of directors' interests in the system.
Before you start
Make sure you have created the share class the director acquires interest in. Refer to Create a Share Class to learn more.
To manually record an interest in shares:
-
Open the company the director acquires shares in.
-
Go to Appointments > Interests in Shares inside the company record.
-
Select Wizards > Acquire Interest.
You can also select the Opening Balance option if you do not know the exact date when the director acquired the interest in shares. The opening balance can be set up as at the date the shareholder became a director of the company.
-
On the first page of the Acquire Interest in Shares wizard that displays, select the beneficial owner and select Next.
-
On the Share Class page, select the share class the director acquires shares from and select Next.
-
On the Acquisition Details page, enter the event date and the notified on date and populate the Shares Acquired field either by entering the amount manually or by using the calculator option next to the field. Select Next.
-
On the Interest Held By page, select the registered owner if different from the beneficial owner. Select Next.
For example, the interest may be held directly by a family member, the registered owner, in which case the director has an indirect interest in the company. If the interest is held directly by the beneficial owner, leave the field blank and select Next.
-
On the Consideration page, enter information relating to the consideration noting that it defaults to the nominal value of the share class. Select Next.
-
On the next page, enter any relevant notes and select an interest grouping if required.
Administrators can define interest groupings in System Tools > List Manager > Director's Interest Groupings. Refer to List Manager for more information.
-
On the Action page, select the relevant action and complete the wizard.
What's next?
You can run a report on directors' interest in shares. To do that, open the individual's record and go to Reports > Other Individual Reports. Select the Report of Interests in Shares and Plans from the list and complete the wizard.
