Entity Ownership module guide

This Entity Ownership module guide covers the cap-table record for your corporate family: who owns what in each organization, the transactions that produced it, and the convertible instruments — notes, SAFEs, warrants, and other rights to acquire equity — that become equity but aren’t equity yet.

What Entity Ownership Tracks

Open Entity Ownership from the left navigation to see the cap-table record for your corporate family: who owns what in each organization, and how that ownership came to be.

Ownership Stakes and Equity Transactions

An Ownership Stake is a single equity stake an owner holds in a holding organization — the owner, the holding, ownership and voting percent, units or shares held, and, when secured, a security interest and pledge secured party. An Equity Transaction is a single change of equity on a given date: a sale, subscription or issuance, bonus issue, contribution, distribution, redemption or buy-back, option exercise, conversion, gift, inheritance, or transfer by operation of law. Every stake reconciles against the transactions that created or changed it, so the current cap table and its history agree.

Convertible Instruments and Documents

A Convertible Instrument is an instrument that becomes equity but isn’t equity yet — a convertible note, SAFE, warrant, or other right to acquire equity, held by a holder in an issuing organization. An Equity Transaction can link to the Convertible Instrument it converted or exercised, so the moment a note becomes shares is traceable from either record.

Tracking Pledges and Dispositions

An Ownership Stake’s status is Acquired (Active) until it’s Sold, Transferred, or Disposed of (all Inactive). Record a pledge by setting Security interest and Pledge secured party, along with the Pledge granted on and Pledge released on dates — a stake can carry an active pledge without changing its ownership status. Use the Disposed of event for any exit from the holding that isn’t a straightforward sale or transfer, so the register reflects the actual reason a stake left the cap table.

Terms, Status, and the Document Register

Terms and the Outstanding Figure

A Convertible Instrument is recorded with its terms as issued — principal or purchase amount, interest rate, maturity, valuation cap, discount, fixed conversion price, and the trigger that converts or exercises it — plus one user-maintained Outstanding figure. Lextree doesn’t recalculate Outstanding for you; update it as the balance changes, since the cap-table system of record stays the ledger of truth. Status runs Issued (Active) through Converted or exercised, Repaid, Expired, Cancelled, or Exited (all Inactive).

The Convertible Instrument Document

Convertible Instrument Document is a standalone register under Convertible Instrument: the executed instrument, a purchase agreement, an amendment, a side letter, a conversion or exercise notice, a payoff or release, or a valuation report, each recorded by document type and effective date. As with other document registers on the platform, each version is its own dated row rather than a file that gets overwritten.

Adding Records and Access

Adding a Stake or Transaction

Creating or editing records requires Editor access to the Entity Ownership module.

1. From the Ownership Stake or Equity Transaction list, click New.
2. Enter the holding organization, the owner or counterparty, and the transaction or acquisition details, then Save.
3. For a convertible right, create a Convertible Instrument instead, and open it to add its Convertible Instrument Document rows as the note, SAFE, or warrant and any later amendments are executed.

Who Can Access Entity Ownership

Entity Ownership doesn’t use per-record sharing — module access alone determines what you see, because ownership only makes sense as a whole picture rather than sliced entity by entity. Viewing requires access to the Entity Ownership module; creating or editing requires Editor access. On Enterprise plans, access group scoping limits the list to entities within your assigned access groups.