Forfeitures occur when equity is returned to the company, typically as outlined in a forfeiture agreement.
Recording a Forfeiture of Vested Shares
Navigate to the Security that contains the shares being forfeited.
Initiate the Repurchase by clicking Actions → Repurchase.
Enter Repurchase Details
Quantity of vested shares being forfeited
Repurchase price of $0
Repurchase date (use the termination date or effective forfeiture date)
You can upload the forfeiture agreement within the workflow or directly on the share.
Complete the workflow
Note: You may need to enable the reverse vesting to perform the repurchase in Pulley if not already enabled:
Navigate to the security and click Actions → Edit.
Toggle on Reverse Schedule.
Hit Update Share
Unvested Shares
When you terminate a stakeholder in Pulley, unvested shares are automatically cancelled as of the termination date.
Learn more about our termination workflow here.
Cap Table Impact
· Unvested shares are automatically cancelled upon termination.
· Vested forfeited shares are recorded as a $0 repurchase.
· Shares in both instances return to the pool.
· Ownership percentages automatically recalculate.