Inform Direct can create attractive branded share option certificates from either a free basic template or a choice of 9 premium designs. Here we describe why share option certificates are desirable and how to produce them in Inform Direct.
Why do companies produce share option certificates?
Option holders will often expect to receive a certificate as part of their options ‘package’ which usually contains the share option agreement, a certificate and an exercise form. Furthermore, elegantly designed option certificates are reassuring to receive and provide physical evidence of the agreement between holder and company.
A share option certificate supports the board minutes and shareholder resolutions pertaining to the granting of the options and is a further piece of evidence of the options should such be required. Some option schemes will require a share option certificate to be provided to each option holder.
Produce share option certificates with Inform Direct
Create company branded share option certificates the easy way.
Use our free certificate template or purchase unlimited use of one of our premium professionally-designed templates for all your certificates.
One of the 9 different premium designs for share option certificates. Purchase once for unlimited use.
What is included on a share option certificate?
A share option certificate should bear:
- The full name of the options holder
- The option holder’s address
- The date the options were granted
- How many shares the holder has options on
- The class of shares the options apply to
- The company name and number of the company offering the options
- The exercise price
- The name of the share options scheme under which the certificate is issued
- Signature of company director
- Signature of company secretary
- Signature of witness, if applicable
- Name, address and occupation of witness, if applicable
- The certificate number, distinct from any other certificate numbers.
A witness is necessary to confirm the signing if the company has a single director but no company secretary.
How are they produced?
A time-saving advantage of creating share option certificates in Inform Direct is that they are generated as part of the workflow of creating the share option scheme and granting the options to individuals or corporate entities. They spring naturally from the share options process rather than having to be created elsewhere.
Before granting any share options, Inform Direct needs you to create a share option scheme under which to grant them. This is done using the Add New Option Scheme wizard in Inform Direct. The process is optimised for simplicity.
- Inform Direct prompts you to choose the option scheme name, setup date and type. Types of scheme include company share option plan (CSOP) and enterprise management initiative (EMI).
- A dropdown allows you to choose the share class for the options from a list that is pre-populated with the share classes your company has.
- The software then offers to produce the supporting documents:
- Shareholders’ resolution to authorise the new share option scheme via a meeting
- Written resolution to authorise the new share option scheme
- Board minutes resolving to recommend establishing the share option scheme.
Tick the relevant checkboxes and Inform Direct will create these documents for you. The share option scheme is now created.
A time-saving advantage of creating share option certificates in Inform Direct is that they are generated as part of the workflow of creating the share option scheme and granting the options to individuals or corporate entities. They spring naturally from the share options process rather than having to be created elsewhere.
The next step is granting options. This is achieved via a wizard with as few steps as possible:
- Enter date the options are granted, date from which they are exercisable, date they expire (if any), the exercise price per share, and the market value per share at the date of grant. There is an area for noting down any requirements to be met before exercise.
- Enter the name and address of the person the share options are being granted to (it can also be a corporation).
- Enter the number of share options and price paid for grant (if any).
- Inform Direct then offers to generate supporting documents:
- Resolution to authorise the grant of share options to the named individual(s) or corporation(s)
- Written resolution to authorise the grant of share options
- Board minutes resolving to grant the share options without shareholder approval (if the articles of association permit)
- Board minutes resolving to recommend the grant of share options needing shareholder approval.
- Now you can choose a design for the share option certificate and Inform Direct will generate it as a PDF.
For an overview of share options in general and the different types of share option scheme, please see our article on share options.
Another choice of design for your option certificate.
