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:
- 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 should be no tax liability for you on receipt of the shares.
- They may have rights to dividends, if they are awarded to the share class, 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.
- 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.
In most cases you will have full beneficial ownership of the 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.