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FORM 4 Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b). UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549STATEMENT
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01
To fill out notional shares, follow these steps:
02
Determine the total number of shares outstanding by referring to the company's articles of incorporation or other relevant documents.
03
Calculate the notional shares by multiplying the total number of shares by the percentage or fraction allocated to each shareholder.
04
Allocate the notional shares to each shareholder based on their respective ownership percentages or any other predetermined criteria.
05
Fill out the notional shares certificate or any other required documentation, including the shareholder's name, number of notional shares allocated, and any additional details as specified.
06
Ensure accuracy and double-check the information provided before finalizing the notional shares documentation.
07
Submit the completed notional shares documentation to the relevant parties or authorities as required.

Who needs notional shares - mandatory?

01
Notional shares are usually needed by companies or entities that want to allocate ownership percentages to shareholders without issuing actual physical shares.
02
This can be useful in situations where issuing physical shares may not be practical or desirable, such as in startups, joint ventures, or private companies.
03
By using notional shares, companies can still determine ownership stakes and allocate rights and benefits to shareholders without the need for physical share certificates.

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Notional shares are hypothetical shares used to calculate equity compensation and performance metrics without actual stock issuance. They represent a value for accounting purposes but do not convey ownership.
Companies that grant stock options or equity-based compensation to employees, executives, or directors, as well as those that are required to disclose such grants under applicable financial regulations, are required to file notional shares.
To fill out notional shares, companies must report the total number of notional shares granted, the terms of the equity compensation plan, valuation methods used, vesting schedules, and any related performance metrics.
The purpose of notional shares is to align employee interests with company performance, provide a measure for potential equity compensation, and offer a clearer picture of the company's financial health and employee compensation strategies.
Companies must report the number of notional shares, their grant date, vesting conditions, valuation methodologies, performance targets, and any changes in their compensation structure over time.
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