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 Common Stock Purchase and Transfer Outside Company Control

James Potter's profile image
James Potter posted 11-15-2024 14:15

We were recently acquired so all common stock options vested.  Some employees decided to sell their shares to another employee at a lose to realize the capital gains lose this tax season.

I'm wondering the best practice for recording these transactions?  The founders aren't liking that the transfer closes the existing CS entry and creates a new one.   They are wanting the existing CS to transfer to the new owner.

Does Carta support this or are we forced to create a new CS# using the Transfer function?

Cecilia Bean's profile image
Cecilia Bean posted 11-19-2024 09:42

Hi James!

As usual, it is generally advised to discuss best practices with your legal counsel first; however, using Carta’s transfer workflow will be the best way to record this transaction from a Carta platform perspective. Using the transfer workflow will allow your company to maintain accurate reporting and a full history of the transactions.

If you would like to have a conversation with a member of our Carta Support team about all things transfers, please feel free to give them a call at +1 (650) 669-8381 Monday-Friday 6:30am-5pm PST!

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