On Vestd, you are likely to receive either ordinary shares (in return for some investment in the business) or growth shares (class V shares).
Once you have accepted the share award you will be able to see the details in your shareholder portfolio, and as other companies you have an interest in are added to Vestd, or you are issued with more shares in the same company, you will see all the information in one, easy to find place.
Ordinary shares typically all have the same class rights. That is to say they normally all have equal rights to share dividends, and capital distributions from the company in the case of an exit or wind up. They will probably also have equal voting rights, but it is possible that a specific class of share may have no voting rights. This would be made clear to you on the platform.
If they are to qualify for SEIS or EIS it is important that they do not have any preferential economic rights to the business.
Vestd's growth shares are also ordinary shares, with exactly the same rights apart from 3 key things:
- They have full economic rights to capital distributions, but only to the growth in value of the business from the point at which the shares are issued to you (the hurdle). This means that there is no tax liability for you on receipt of the shares.
- They have full rights to dividends, but only once any conditions have been met (see below).
- They can have conditionality attached to them. When you accept them, you will also be agreeing to fulfil certain specific criteria associated with them. This can either be time or milestone based, or both. If you do not fulfil the criteria, then the company is able to convert the V shares into deferred shares which have no economic rights.
When the growth shares are offered by the company on the platform, they will either be voting (Vv) or non-voting (Vn) shares.
You will have full beneficial ownership of the shares, but they can be held on your behalf by Vestd Nominees Ltd on the platform.
If they are held by Vestd Nominess Ltd, and the company leaves the platform before your shares have been sold, then full legal ownership will be transferred to you.
Our team, content and app can help you make informed decisions. However, any guidance and support should not be considered as 'legal or financial advice'.