Every capitalization table (cap table) problem stems from two basic principles: lack of institutional control and excessive versions. Having to request your cap table from a law firm is a barrier to consistent and accurate updates. And once you have made the changes, it can be difficult to remember and communicate which version is the most up to date.
Here are the 10 most common cap table errors we see at eShares.
1. Dates that don’t agree.
The date a stakeholder exercises their options and the date their stock certificate is issued should be the same. In many cap tables, there is a delay between the two dates. Using software that allows you to issue shares electronically is one of the easiest fixes to this issue. (more…)