How to Cancel Vestd

To perform a full cancellation of options on the Vestd platform, follow these steps:

Logging In and Navigating

Log in to your Vestd account and navigate to the side navigation menu. Select Share schemes and then All option agreements.

Selecting the Agreement

Click on the specific option agreement that you want to cancel.

Initiating Cancellation

Scroll down to the relevant section and click on the button to Cancel this option agreement.

Choosing Cancellation Type

You will have the option to cancel all of the recipient’s options, part-cancel their options, or indicate that they are no longer an employee. For a full cancellation, select the option to cancel all of the recipient’s options.

Providing Details

If the cancellation is in line with the terms of the agreement (e.g., due to the employee leaving, failure to meet conditions, or lapse of exercisable period), enter the additional details as required. For example:

• Failure to meet the conditions set when issuing the options
• The options have lapsed and cease to be exercisable
• The option holder has had their employment contract terminated

Confirming Cancellation

Once you have entered the necessary details, click Confirm to cancel the option. The platform will automatically generate Board Minutes, which will be stored in your Documents folder, and notify the recipient of the reason for cancellation.

HMRC Notifications

Ensure you have completed your HMRC Notifications for all cancelled options. The Vestd platform will inform you what needs notifying and when. This typically includes an Initial Notification for EMI options and an Annual Notification for both EMI and Unapproved options.

Additional Steps for EMI Options

For EMI options that are not exercised within 90 days of the employee leaving, obtain a company valuation at the time of leaving to ensure the correct tax is paid when the options are eventually exercised. You can do this through Vestd by going to your Valuations page, starting a new valuation, and selecting Exercise valuation.

Mutual Consent Cancellation

If the cancellation is by mutual consent (e.g., due to an error in the agreement or regrant of the option), you will need to download an Agreement for Surrender. Complete the form with the required information, and ensure both a company director and the recipient sign it. Upload the signed Agreement for Surrender to Vestd for your records.

By following these steps, you can ensure that the option cancellation is processed correctly and in compliance with the necessary regulations.