Equity Governance Guide & Checklist

Frequently asked questions

• What does equity governance actually involve?

  Equity governance covers the processes and records that ensure a company’s share ownership, share schemes and statutory registers are accurate, compliant and auditable.

  This includes maintaining the cap table, updating statutory registers, issuing shares correctly, managing share schemes, and keeping governance documentation accessible and up to date.

• Who is the Equity Governance Guide for?

  The guide is designed for company secretaries, legal teams and finance leaders responsible for managing equity records, statutory compliance and share schemes in growing companies.

• How do share schemes affect governance responsibilities?

  Share schemes such as EMI or CSOP introduce additional compliance requirements, including HMRC notifications, valuations and documentation of option grants, vesting schedules and exercise terms.

  Without proper governance processes, managing multiple schemes can quickly become complex. 

• What needs to happen when new shares are issued?

  Issuing shares requires formal authority and documentation. Directors must have the legal authority to allot shares, board resolutions must be recorded, and share certificates must be issued within two months.

  Companies must also file the relevant forms with Companies House and update their registers accordingly. 

• What filings are required to stay compliant?

  Companies must submit confirmation statements annually and file updates to directors, shareholders, PSCs and share capital when changes occur.

  Share allotments must be reported using the appropriate Companies House forms, and share schemes may require HMRC reporting.

  Missing these deadlines can lead to penalties. Find out more on ERS reporting.