1. Vestd Help Centre
  2. Receiving shares: for employees, investors and shareholders

Receiving growth shares on Vestd

You will be invited to Vestd to receive growth shares (class V shares) in a company.

Vestd's growth shares are also ordinary shares, with exactly the same rights apart from 3 key things:

  1. They have full economic rights to capital distributions, but only from the growth in share value from the point at which the shares were issued to you (the hurdle). This means there should be no tax liability for you on receipt of the shares.
  2. They may have rights to dividends, if they are awarded to the share class, but only once any conditions have been met (see below).
  3. 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. 
  4. If you are an employee or director of the company, it is important that on receipt of the growth shares you sign an ITEPA 431 election within 14 days.

When the growth shares are offered by the company on the platform, they will either be voting (Vv) or non-voting (Vn) shares.

You'll receive an email to accept the growth shares and, if you haven't already, create your Vestd account to view the details and projected value of your growth shares. 

Once you have accepted, you will need to pay the issuing company nominal value for the growth shares. They will provide the amount payable upon your acceptance. 

You can also work out the total amount payable by clicking Detailed view of your options, distributions and shareholdings to the right of your recipient dashboard, or by following the link from the acceptance confirmation email you receive. 

In the Number of shares column, multiply the number of shares received by nominal value for the total amount payable. If you have any questions or to arrange payment, please contact the issuing company. 

 

Our team, content and app can help you make informed decisions. However, any guidance and support should not be considered as 'legal, tax or financial advice.'