Shares Setup

Shares setup defines the products and rules used by share accounts, share transactions, dividends, restrictions, and governance rights.

Use setup before users start creating accounts or processing ownership movements. A weak product setup can cause blocked transactions, incorrect dividend eligibility, incorrect voting rights, or failed accounting reviews.

Workspace Reference

Open Shares -> Setup -> Products. Use this workspace to create or edit share products, review product behavior, manage product status, and confirm which product actions are enabled before live ownership activity starts.

Share products should be reviewed by operations, finance, and governance users before activation. They influence account opening, ownership transactions, certificates, pledges, withdrawals, dividends, voting, and accounting.

Share Products

A share product defines the type of shares the organization offers or manages. It controls how accounts behave and which actions users can perform.

Important attributes include:

• Product name and code: the user-facing identity of the share product.
• Share class or group: the product family, such as ordinary, preference, member capital, employee shares, or other organization-defined classes.
• Currency: the currency used for pricing, balances, contributions, and distributions.
• Par value or valuation behavior: how share value is interpreted for transactions and reporting.
• Minimum and maximum holding rules: limits that prevent under-holding, over-holding, or policy breaches.
• Transfer rules: whether shares can move between holders and whether approval is required.
• Pledge rules: whether shares can be used as security.
• Withdrawal and redemption rules: whether holders can request share value back and which checks apply.
• Certificate behavior: whether certificates can or must be issued.
• Dividend eligibility: whether the product participates in distributions and how eligible balances are identified.
• Governance behavior: whether the product grants voting or meeting rights.
• Approval behavior: which actions require review before they affect ownership.
• Accounting behavior: which finance mappings must be ready before live transactions are approved.
• Business unit restrictions: whether the product is limited to selected branches, services, or operating units.

Share Product Form Areas

Form Area	What It Controls	Why Users Care
Product identity	Product name, code, share type, class, description, and status.	Users select this product when opening accounts and processing transactions.
Currency and valuation	Currency, par value, unit value, and valuation behavior.	Controls how units convert to monetary value for transactions, reporting, and distributions.
Holding limits	Minimum holding, maximum holding, and eligibility limits.	Blocks under-holding, over-holding, or policy-breaching account activity.
Transaction flags	Issue, transfer, redemption, adjustment, call payment, and reinvestment availability.	Determines which transaction types users can process.
Certificate flags	Whether certificates can or must be issued.	Controls certificate evidence and replacement workflows.
Pledge and withdrawal flags	Whether shares can be pledged, released, withdrawn, redeemed, or exited.	Controls share-backed lending support and member exit workflows.
Dividend settings	Dividend eligibility, calculation basis, payout option, reinvestment option, and tax behavior.	Determines who receives distributions and how they are paid or reinvested.
Governance settings	Voting rights, voting basis, meeting eligibility, and proxy behavior.	Determines whether accounts count in shareholder decision records.
Pricing and tax	Fees, charges, valuation adjustments, withholding, and share-domain taxes.	Controls financial deductions and shareholder net outcomes.
Accounting readiness	Equity, payable, clearing, income, tax, and settlement mappings where configured.	Ensures approved share activity can be reviewed and posted by finance.

Product Flags

Product flags control optional behavior. Examples include whether transfers are allowed, whether certificates can be issued, whether withdrawals need approval, whether pledges are supported, whether vesting applies, whether lending restrictions apply, and how dividends should treat the product.

The setup screen may show inherited behavior from the selected share type and product-level values that administrators can change. Treat the preview or behavior summary as a control step before saving.

Administrators should document why each sensitive flag is enabled so operations users understand the product design. This is especially important for products that support withdrawals, pledges, dividends, capital calls, voting, or share-backed lending.

Pricing And Tax Behavior

Pricing settings control share fees, valuation behavior, rate logic, and product charges where the organization uses pricing profiles.

Tax settings control share-domain taxes such as dividend withholding, transfer tax, stamp duty, or other share-specific deductions.

Pricing and tax are different concepts. A product may need both, one, or neither depending on policy. If taxation is enabled, finance users should confirm the correct approved tax setup before distributions are declared.

Accounting Links

Accounting links determine how share transactions and distributions are reviewed and posted. Finance users should confirm the configured accounts, control-account behavior, and sub-ledger expectations before approving live share activity.

Typical accounting concepts include:

• shareholder capital or equity accounts for issued shares;
• cash, bank, wallet, or settlement clearing accounts for funding and payouts;
• dividend payable or distribution clearing accounts for approved dividends;
• withholding or tax payable accounts where share taxes apply;
• fee or income accounts where product charges apply.

If accounting setup is incomplete, a share transaction may be valid operationally but fail when finance tries to post or approve the accounting event.

Setup Checklist

Before users create share accounts:

• Confirm product rules match legal and policy requirements.
• Confirm share type, currency, par value, and holding limits are correct.
• Confirm transfers, pledges, withdrawals, certificates, capital calls, dividends, and voting rights are intentionally enabled or disabled.
• Confirm approvals are configured for sensitive actions.
• Confirm pricing and tax settings are complete where those features are enabled.
• Confirm accounting links are complete and tested.
• Confirm business unit restrictions are correct.
• Test one share account, one ownership transaction, one restriction, and one accounting review in a controlled environment.