Entities – Manage Legal Entities with No-Par Value Shares

DiliTrust Legal Entity Management (LEM) now supports legal entities whose share classes carry no nominal (par) value. This is particularly relevant for US-based entities, private equity structures, and other jurisdictions where shares are issued without a fixed par value.

✅ Introduction

In many legal systems — especially in the United States and private equity — companies issue shares without a fixed par value. These structures are increasingly common globally, and DiliTrust LEM now fully accommodates them. Whether you are managing a Delaware LLC, a private equity vehicle, or any entity where shares have no nominal value, LEM provides the tools to accurately represent and track your ownership structures.

✋ Prerequisites / Getting Started

• You must have a contributor or administrator role in DiliTrust LEM to create or edit share classes.
• The legal entity must already be created in the system before you can configure its share classes.

⭐ Step-by-Step Guide

Creating a Share Class with No Par Value

1. Open the legal entity in DiliTrust LEM.
2. Navigate to the Share Classes section.
3. Click Add Share Class.
4. When configuring the share class details, select the option No Par Value for the nominal value field.
5. Complete the remaining share class details (name, number of shares, voting rights, etc.).
6. Save the share class.

Impact on Grids, Reports, and Profiles

1. Once a share class is configured as no par value, all related grids, reports, and company profiles will reflect this designation correctly.
2. Total Capital calculations are automatically adjusted to account for no-par value share classes.
3. Where applicable, share capital is displayed or labeled in a way that reflects the no-par value structure.

✨ Tips & Best Practices

• Use no-par value for US entities: If you manage US-incorporated companies (e.g., Delaware corporations or LLCs), configure share classes as no par value to accurately reflect their legal structure.
• Review total capital calculations: After setting up no-par value share classes, review the total capital display in reports to ensure it reflects your organization's intended accounting treatment.
• Consistency across entities: Apply the same share class structure consistently across similar entity types to ensure comparable reporting.

❌ Limitations & Known Constraints

• The no-par value option applies to share class configuration. It does not change how individual shareholding transactions are recorded.
• Existing share classes must be manually updated if you wish to change them to no-par value — this cannot be done in bulk.

❓ FAQ

What is a no-par value share?

A no-par value share is a share that does not have a nominal (face) value assigned to it. This is common in US corporate law and private equity, where the economic value of a share is determined by the market or by agreement rather than a fixed nominal amount.

Does enabling no-par value affect existing data?

No. Configuring a new share class as no par value does not affect existing share classes or historical data.

How is total capital calculated for entities with no-par value shares?

The system automatically adjusts the total capital calculation when a share class is configured as no par value. The exact treatment may vary — consult your DiliTrust administrator for specifics.