Many companies work with fractional shares (common in Germany and the Netherlands). By using different nominal values per share class, it is possible to reflect fractional shares, but this workaround causes several pain points:
So far, companies have been using nominal values per share class as a workaround for fractional shares. This causes several issues and is error-prone in itself.
We're happy to announce that it is now possible to reflect fractional shares directly in Ledgy.
Fractional shares enable the exercise of fractional amounts of grants, the award of fractional grants, and the issue or transfer of fractional shares. Fractional shares can have up to five decimal places.
How to enable fractional shares
Fractional shares must be activated by Support. Please get in touch with us via Support chat or email. Specify how many decimal places you want your shares to have. Up to five decimal places are possible. We will confirm when the activation of fractional shares is complete.
You will see if fractional shares are activated and how many decimal places your cap table supports when you go to Company Settings > General > Equity management settings.
What changes in your cap table when fractional shares are active?
Once the feature is activated, all amounts in the app can be fractional and have up to five decimal places. From vesting to document templating, from exercising to scenario modelling. Excel imports and exports as well.
Vesting will be calculated to the selected number of decimal places.