Verifying your Cap Table

Now that you've submitted all required company details and documents, it's time to make sure that the work we've done is accurate. In this blog post, we'll break down the steps and tasks involved in this crucial phase of your Carta onboarding process. Cap table verification forms the foundation for streamlined equity administration and paves the way for successful electronic securities issuance.

Final Review: Ensuring Accuracy

After your Implementations Manager completes section two of the Setup Guide, the first two items in the third section will unlock. Now, it's your turn to take the reins and ensure accuracy:

1. Verify Rights and Preferences: Review your company's share class* information for accuracy, determining the order of priority for share privileges that have been established under your company Certificate of Incorporation. This task is only applicable in case you have preferred share classes in your cap table

By verifying rights and preferences, you're ensuring that the information about these share classes privileges is correct. These privileges will include things like liquidation preferences, dividends rights and more.

*A share class is a group of shares that have similar rights and privileges. For example, common shares, Series A preferred shares, Series B Preferred Shares and more.

1.1 Review Dividends and Participation: Carefully review dividend and preferred share class participation details.

Dividends are payments that some shareholders receive from the company's profits. In this step, you'll be looking at the dividend details associated with the different preferred share classes. Reviewing dividend details means making sure that the dividend rates and preferences are accurate and align with your company's documentation.

1.2 Confirm Accuracy: Acknowledge your legal counsel's review of data accuracy by clicking "Verify."

Once you've thoroughly reviewed and ensured the accuracy of the share class information, dividend details, and other data, you're confirming that you and your legal team have verified the information's correctness. By clicking "Verify," you're acknowledging that you've gone through the data and that it's accurate as per the legal counsel's review. This serves as a formal confirmation that you've completed this step and are ready to move forward.

2. Verify the Cap Table

This pivotal step ensures accurate data will be reflected in your Carta account upon activation. Carefully review your company's information on the cap table page, confirming its accuracy.

2.1 Completing the Verification

As you verify each detail, confirm your agreement by typing your full name on the signature line. This signals your commitment to the declaration of data accuracy and completeness.

 Paving the Way for Success

Cap table verification isn't just a task—it's an integral part of your journey towards effective equity management. By reviewing and confirming your cap table information, you're setting the stage for accurate, compliant, and transparent equity administration.

The Carta Advantage Awaits

As you complete cap table verification and each subsequent step, you're inching closer to unleashing the full potential of Carta's equity management capabilities. Your dedicated Implementations Manager and Carta Community are here to guide you throughout this process. If you have questions or need assistance, don't hesitate to reach out.