The most common reason for an unreconciled share class is that an allotment has been completed outside of Inform Direct. This guide covers how to replicate the allotment to reconcile the class.
For example, when a company was first formed there might have been just 1 ordinary £1.00 share in issue. After a while it was decided to allot another 89 shares bringing the total in issue up to 90. The SH01 form advising that 89 new shares were being issued was correctly filed at Companies House. However Companies House are not told who the new shares were allotted to since this information is not included on form SH01.
Inform Direct simply asks you to make a system allotment (i.e. one that does not get sent to Companies House) of the 89 shares. This being the the difference between the Total in issue - i.e. 90 and the number of shares for which the owner is known on the Shareholders tab here just 1.
Note: While the status is unreconciled no messages are sent to Companies House.
To make a system allotment:
1. Go to the Share Classes tab.
2. Click on the blue 'Allot new shares' button. See How Do I Allot Shares?
3. Enter the date the shares were allotted.
Note: You can find the date on the SH01 filed at Companies House. It cannot be a date prior to the last confirmation statement or incorporation.
4. The correct number of shares need to be allotted. This is best done on a shareholder by shareholder basis. If all the unreconciled shares belong to just one shareholder, put in the number of unreconciled shares.
So, in the above example, there are 90 in the share class and we know the owner of the 1 original share so the remaining 89 will need to be allotted to reconcile the share class.
Note: It is very important that when reconciling you do not exceed the difference between the Number of shares and No. allotted to shareholders. 90 in this instance.
5. Enter the consideration the shareholder paid. Then press 'Continue.'
Note: Do not use commas or symbols. So for £2,000 enter 2000.00
6. Now select 'Who the shares are going to.'
How to allot shares to an Individual
How to allot shares to a corporate
How to allot shares to a joint shareholder
How to allot shares to a trust
Note: Start typing the name of a shareholder. If that shareholder is already known to Inform Direct suggestions will be offered. This way you avoid having to input information twice or creating duplicate records.
When completing the allotment, the unreconciled status will mean that a GREEN submit button shows, this confirms that the allotment is not submitting anything to Companies House. It is just replicating the action which has already been filed.
If you see a RED submit button please stop immediately, a red submit button would submit to Companies House. It may be that the process is being completed on the incorrect class, or the class is not unreconciled.
Complete the above steps until all the shares are reconciled. When this is done the 'Share Classes' tab will show the status of each class of share as current with a green button instead of red.
Once the last share has been reconciled the alert on the 'Dashboard' will disappear.
Note: Any further allotments once everything is reconciled will generate an SH01 being sent to Companies House electronically.